BLAW 3201 Chapter : Chapter 13 Test Banks
Document Summary
An agreement for sale of an illegal substance will be enforced by the courts if all other elements of the contract are present. Bargains are illegal if they involve a crime or tort but not if they are merely against public policy. Maximum rates of interest that are permitted under usury statutes are uniform from state to state. Specific lender usury statutes rather than the general usury statute generally apply to real estate mortgages and small consumer loans. A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances. An exculpatory clause attempts to excuse one from liability for her own tortious conduct. The code and the restatement both contain definitions of what constitutes "uncon- scionable" conduct. The term public policy is precisely and narrowly defined in the restatement and by state statutes. Regulation of gambling is solely under federal jurisdiction, through congressional legislation and u. s. court enforcement.
