BMGT 380 Lecture Notes - Lecture 4: Liability Waiver, Unconscionability, High Standard Manufacturing Company

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 380
• Professor: Jennifer Gershberg

Document Summary

Most of the time, illegal contracts are considered void. Three basic categories of illegality: violates a statute, ve(cid:396)(cid:455) st(cid:396)aightfo(cid:396)(cid:449)a(cid:396)d; if a statute sa(cid:455)s (cid:455)ou (cid:272)a(cid:374)"t do so(cid:373)ethi(cid:374)g, & (cid:455)ou (cid:373)ake a contract to perform said action, it is an illegal contract & void, ex. You know certain goods have been stolen, & you enter a contract to sell those goods. You are knowingly promoting the sale of stolen goods probably unenforceable: ex. Contract to advertise illegal drugs you are promoting the sale of illegal drugs violates public policy: contracts in restraint of competition. Noncompetes: certain exculpatory clauses, a liability waiver, will not be upheld if you sign away any liability greater than negligence, ex. A(cid:374) ai(cid:396)li(cid:374)e; (cid:455)ou (cid:272)ould(cid:374)"t sig(cid:374) a(cid:449)a(cid:455) (cid:455)our rights to sue the airline because they owe a duty to public; must be held to a high standard: ca(cid:374)(cid:374)ot (cid:449)ai(cid:448)e lia(cid:271)ilit(cid:455) that"s i(cid:373)posed (cid:271)(cid:455) a(cid:374)othe(cid:396) la(cid:449, e(cid:454).