BUS 311 Week 2 Quiz Chapter 011

1. If the parties to a contract are legally competent and have reached mutual agreement, the law does not require that the purpose of the agreement be legal.

BT: Knowledge

PO: 1

True False

1. Examples of agreements that violate government statutes, and are enforceable by the courts, are gambling and wagering agreements.

BT: Knowledge

PO: 2

True False

1. Gambling on Native American reservations is universally legal in all the states.

BT: Knowledge

PO: 2

True False

1. Usury laws are applicable to transactions between corporations in all the states.

BT: Knowledge

PO: 2

True False

1. In many states, the usury statutes apply to retail installment credit sales and credit card transactions.

BT: Knowledge

PO: 2

True False

1. Some agreements are unenforceable because they are contrary to the interests of the public, such as agreements in restraint of marriage.

BT: Knowledge

PO: 3

True False

1. Persons attempting to influence the public officials are exposed and prosecuted every year, but not the public officials.

BT: Knowledge

PO: 3

True False

1. All agreements are typically legal and enforceable as long as they fulfill the terms of a contract, even if it is to wrongfully use one's influence.

BT: Knowledge

PO: 3

True False

1. Monopoly power is the term used to describe a situation in which one or more people or firms control the market in a particular area or for a certain product.

BT: Knowledge

PO: 4

True False

1. The Federal Antitrust Act, also known as the Sherman Antitrust Act, forbids agreements that result in certain kinds of product price discrimination.

BT: Knowledge

PO: 4

True False

1. In 1890, Congress passed the Federal Antitrust Act, also called the Robinson-

Patman Act.

BT: Knowledge

PO: 4

True False

1. The Robinson-Patman Act of 1936 specifically prohibits sellers from discriminating among different purchasers of goods of like grade and quality under certain conditions.

BT: Knowledge

PO: 4

True False

1. A private franchise is another form of legal monopoly which is sometimes called natural monopolies.

BT: Knowledge

PO: 5

True False

1. A community may designate certain areas as zones for such uses as light industrial, industrial, commercial, and residential.

BT: Knowledge

PO: 5

True False

1. Zoning regulations may act as legal restraints of trade because they restrict where and how businesses may operate.

BT: Knowledge

PO: 5

True False

1. Broad classifications of illegal agreements include agreements:

A. contrary to the biblical law and other religions.

B. that have been declared illegal by a public ballot.

C. made against the security and welfare of the public.

D. that are made orally between two people.

1. In the case of a divisible agreement that has one part with a legal purpose, the part with a legal purpose is generally:

A. enforceable.

B. void.

C. unenforceable.

D. disaffirmed.

1. Some state statutes and local ordinances that regulate the creation and performance of certain types of contracts on Sundays and legal holidays are referred to as:

A. white laws.

B. black laws.

C. blue laws.

D. red laws.

1. Contracts made on a legal holiday can generally be performed on the:

A. same day of the legal holiday.

B. next business day following the holiday.

C. on the day prior to the holiday.

D. within one week from the date of legal holiday.

1. Contracts involving the payment of a note, the delivery of merchandise, and the repair of equipment are examples of:

A. gambling and wagering agreements.

B. usurious agreements.

C. unlicensed transactions.

D. agreements made on Sundays or legal holidays.

1. A gambling agreement is one in which performance by one party depends on the occurrence of a(n):

A. uncertain event.

B. unrequited event.

C. terminated agreement.

D. confirm event.

1. An agreement in which performance by one party depends upon the occurrence of an uncertain event in the hope of gaining something of value is termed:

A. a speculative agreement.

B. a gambling agreement.

C. an uncertain agreement.

D. an agreement of chance.

1. In certain states, typical office basketball and football pools are examples of:

A. legal restraints of trade.

B. usurious agreements.

C. common office sports.

D. illegal gambling.

1. To protect the public, most states require persons engaged in certain businesses, professions, and occupations to be:

A. contractual.

B. monopolized.

C. licensed.

D. unlicensed.

1. An agreement to loan money at a higher-than-legal rate of interest is:

A. usurious.

B. unconscionable.

C. adhesive.

D. speculative.

1. If the purpose of the licensing requirement is solely to raise revenue for the jurisdiction, and not to ensure competency, the absence of a license:

A. does not make the agreement void.

B. makes the agreement void.

C. creates an illegal and unenforceable contract.

D. creates a legal but void agreement.

1. If the purpose of the licensing requirement is solely to raise revenue for the jurisdiction, and not to ensure competency, the absence of a license does not make the agreement:

A. voidable.

B. void.

C. ratified.

D. disaffirmed.

1. If the purpose of the statute is regulatory and enforcement of the licensing requirements is clearly in the public interest, then the unlicensed transaction becomes:

A. valid.

B. illegal.

C. voidable.

D. ratified.

1. An agreement made with an intention to defraud creditors or other persons is referred to as a(n):

A. usurious agreement.

B. wagering agreement.

C. dealership agreement.

D. agreement against public policy.

1. An agreement to refrain from testifying as a witness in a legal action falls under agreements that:

A. obstruct or pervert justice.

B. interfere with public service.

C. are in restraint of marriage.

D. are in restraint of trade.

1. An agreement to encourage a lawsuit in which one or more parties have no legitimate interest is:

A. a subversion.

B. champerty.

C. unlicensed.

D. a transaction.

1. Agreements in restraint of marriage are:

A. valid.

B. void.

C. voidable .

D. enforceable.

1. Agreements to defraud creditors and other persons are void and unenforceable because they lack the element of:

A. optimum communication.

B. competency of parties.

C. offer and acceptance.

D. legality of purpose.

1. In 1890, Congress passed the Federal Antitrust Act. Similar antitrust statutes have been passed by most states to prohibit:

A. local anticompetitive practices.

B. racial discrimination.

C. payment of taxes.

D. religious discrimination.

1. In 1890, Congress passed the Federal Antitrust Act, also known as the:

A. Corporate Oxendale Act.

B. Swiss Antitrust Law.

C. Sherman Antitrust Act.

D. Sarbanes Oxley Act.

1. The __ forbids certain agreements that tend to unreasonably inhibit competition, fix prices, allocate territories, or limit production.

A. Clean Water Act

B. Sherman Antitrust Act

C. Educate America Act

D. Americans with Disabilities Act

1. Two pharmacies agreed to serve a particular section of the town by offering medicines at lower prices in order to create monopoly and discourage competition among other stores. This would be a(n):

A. agreement in restraint of trade.

B. non-solicitation agreement.

C. usurious agreement.

D. agreement to defraud creditors.

1. If a federal or state government grants a firm or person a license to conduct a specific business, then such a firm or person may be known as a:

A. private franchisee.

B. government-granted franchise.

C. reentry permit.

D. work permit.

1. A __ is a special kind of business organization involving a contractual relationship between the parent firm and the independent company.

A. government-granted monopoly

B. retailer

C. private franchise

D. wholesaler

1. Like zoning regulations, safety and environmental regulations also serve as:

A. legal restraints of trade.

B. foreign protection laws.

C. unfair trade practices.

D. policies encouraging monopolization.

1. Federal and state legislatures have enacted statutes to protect the ____of the general population from the effects of pollution of the atmosphere and bodies of water.

A. health and welfare

B. movable property

C. immovable property

D. educational status