(1) In the case of a bilateral contract, a court will enforce one partys promise only if the other party promised something in exchange.

True or False

(2)A written agreement for the sale of illegal subject matter is void under contract law.

True or False

(3)In most states, a minor is someone under the age of _____.

21

18

19

23

25

(4)Which of the following are the two main purposes of professional licensing statutes?

To give the government an avenue by which to regulate specific industries and to temper the effectiveness of free enterprise.

To protect the publics health, safety, and welfare and to temper the effectiveness of free enterprise.

To give the government an avenue by which to regulate specific industries and to tax professionals.

To protect the publics health, safety, and welfare and to tax professionals.

To give the government an avenue by which to regulate specific industries and to protect the publics health, safety, and welfare.

(5)Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Persons suffering from a mental illness never have capacity to enter into a binding contract.

Persons suffering from a mental illness have full capacity to enter into a binding contract, so long as they do not present a danger to themselves or others.

Persons suffering from a mental illness have full capacity to enter into a binding contract, so long as they inform the other party that they are either in, or in the process of seeking, professional treatment.

Persons suffering from a mental illness may have full, limited, or no legal capacity to enter into a binding contract, depending on the nature and extent of their mental deficiency.

Persons who suffer from a mental illness always have full capacity to enter into a binding contract.