CHAPTER 10—ILLEGAL AGREEMENTS Key
1. Which of the following is true of gambling contracts?
2. Which of the following is true of Sunday contracts?
3. In which of the following situations is a state most likely to enforce a usury law?
4. Which of the following is true of usury laws?
5. The legal rate of interest is a rate:
6. Under the _____, it is unlawful to discriminate in price between competing buyers if the goods are of like
grade, quantity, and quality.
7. Which of the following is an example of a contract contrary to public policy?
8. Which of the following is true of contracts that limit the freedom of marriage?
9. All contracts must be for a lawful purpose otherwise they would be considered void.
10. A contract is indivisible if it can be performed in ways other than as an entity.
11. The courts may sometimes allow a wrongdoer to enforce a contract against an innocent party.
12. A Sunday contract is declared legal by statute.
13. The legal contract rate is the highest rate that may be charged according to usury laws.
14. A dentist who performs services without a license is entitled to sue to collect for the services.
15. A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the
contract.
16. If a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be
successful.
17. Contracts which are designed to limit competition are acceptable by law.
18. Contracts obstructing the administration of justice are unenforceable.
19. An agreement not to marry during minority is invalid.
20. What are some of the contracts that are contrary to public policy? Describe any two contracts.