Usury laws are generally enacted to

a establish a MAXIMUM rate of interest that may be charged for loans.

b establish a MINIMUM rate of interest that may be charged for loans.

c prevent the misuse of money advanced as loans.

d prevent the misuse of money paid back on loans.

Contracts that involve illegal agreements are invalid.

a true

b false

Ben is an attorney who practices law without a license. His client Mel owes him $1,000 for the performance of legal services. When Mel learns that Ben does not have a license, he refuses to pay his bill.

a Mel must pay Ben because Mel acceptedthe legal services.

b Mel must pay Ben because a license to practice law is an example of a registration license.

c Mel won't have to pay Ben because a license to practice law is an example of a regulatory license.

d None of the above.

Glenn convinced his Great Aunt Lila, who was 93 years old, to buy his Volvo for $10,000. The actual value of the car was $1500.

a This contract is unconscionable and will not be enforced.

b Glenn will be prosecuted for piracy.

c both of the above are true

d neither of the above are true

A contract that requires the performance of an act prohibited by law is

Group of answer choices

a void.

b voidable at the option of the party having less bargaining power.

c voidable at the option of either party.

d enforceable if the act does not involve criminal activity.

Eve, an experienced automotive engineer, signs an agreement with her employer, Environmental Auto Co., that she will never again work in the auto industry after she leaves employment with them. A court considering this agreement

a Will declare it void

b Will enforce the agreement in any event

c Will only enforce the agreement if it resulted from a bargained-for exchange

d Will enforce the agreement only if it is customary in the auto industry to have such agreements

If the underlying purpose of a licensing statute is to raise revenues, then a contract with an unlicensed professional will normally be enforceable.

Group of answer choices

a true

b false

Usury statutes apply to all loan transactions.

Group of answer choices

a true

b false

In order for a restrictive covenant on employment to be upheld by a court, it must be

a Reasonable only in the nature of work it limits.

b Reasonable only in the duration of time involved.

c Reasonable only inthe geographical area covered.

d Reasonable in the nature of work itlimits,in the duration of time involved,and in the geographical area covered.

A court will sometimes separate out the legal portion of a contractfrom the illegal portion, enforcingonly the legal parts.

a true

b false