Business Law Chapter 10 – Flashcards
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Game involving three elements: prize (for 2 or more winners), chance (to win based on luck), and consideration (payment to participate)
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Lottery
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Betting on the certain outcome of an event (an illegal form of lottery)
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Wager
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Refraining from informing on or prosecuting an alleged crime in exchange for money or other valuable consideration
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Compounding a crime
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State requirement for people in certain occupations and businesses, such as professionals and tradespeople, to pass exams and receive a license in order to ensure he or she can perform adequately (protects the public)
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Competency license
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A license whose purpose is only to raise revenue rather than to protect the public (not required to enter into a valid contract)
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Revenue license
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Laws enacted at the federal and state levels to preserve/ promote competition between sellers in order to prohibit price fixing and bid rigging
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Anti-trust laws
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When competitors agree to charge the same amount for a product or service
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Price fixing
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A form of price fixing that occurs when competitors who bid on jobs agree that one bidder will have the lowest bid for a particular job
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Bid rigging
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A contract that is so grossly unfair that parties under ordinary circumstances would not accept it
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Unconscionable
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Casinos, pari-mutual betting, state-run lotteries, bingo games and pull-tab betting, and card rooms are all types of?
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Legal lotteries
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3 elements of an unconscionable contract
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1) presented with a take-it or leave-if contract 2) other party has overwhelming bargaining power 3) only way to avoid injustice is to void the contract
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3 illegal agreements that restrain trade unreasonably
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1) Price fixing 2) Resale price maintenance 3) Allocation of markets
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Examples of agreements that obstruct legal procedure
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Bribing witnesses and jurors and compounding a crime
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Illegal agreements that are enforceable in court
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Divisible contracts where a separation is made between the legal and illegal parts of a contract
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2 contracts that can be made illegal by a statute
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Agreements to pay usurious interest and agreements involving illegal discrimination
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Termination clauses can be illegal and unenforceable if?
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The time period is unreasonable and/or the geographic limitations are unreasonable
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Contract that has been fully performed
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Executed contract
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Contract that has not been fully performed
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Executory contract
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Law stating that certain agreements are not enforceable in court unless they are evidenced by a signed writing
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Statute of Frauds
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Words spoken prior to the execution of the final writing or at the time of signing that are generally inadmissible in court
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Parol evidence
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When is Parol evidence admissible in court?
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When proving elements of a valid contract (Ex. fraud, misrepresentation)
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Which key elements must be in writing in order to satisfy the Statute of Frauds?
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1) names of the parties 2) description of the subject matter 3) price 4) quantity 5) signature 6) method of payment
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Which key elements must be in writing in order to satisfy the UCC?
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1) quantity of goods 2) contract has been created by the parties
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Additional things included in contracts to sell an interest in real property besides real property
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Transfer of title, easements to travel over the land, mineral rights on the land (all of these MUST be placed in writing)
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For contracts that require more than one year to complete, when does the year begin?
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At the time the contract is signed, NOT at the time the contract is to begin
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Why is it sometimes better to place contracts in writing?
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It's clearer, creates less confusion, prevents fraudulent claims, contract will not be affected by illness, death, or memory loss if placed in writing
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Why is it sometimes not better to place contracts in writing?
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Not always efficient, saves time, saves money
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Numerals vs. Words ---> which will prevail?
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Words
