Term
| Gambling (except where legally authorized) – |
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Definition
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Term
| Criminalized transactions |
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Definition
| (Examples: illegal drug sales, prostitution, child pornography, sales of alcohol to minors, sales of items known to be stolen, etc.) |
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Term
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Definition
| establish a maximum allowable rate of interest; charging a higher amount |
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Term
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Definition
| licensing statute that is intended to protect the public against unqualified persons; required by an agency to prove competency |
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Term
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Definition
| only seeks to raise money; a tax, not about competency |
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Term
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Definition
| unreasonable restraints of trade are unenforceable |
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Term
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Definition
| the courts generally disfavor contractual provisions excusing a party from liability for its own tortious conduct, but may enforce if only applicable to negligent conduct |
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Term
| Unconscionable contracts or provisions (UCC only) – |
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Definition
| unfair or unduly harsh agreements are not enforceable |
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Term
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Definition
| an agreement that requires a person to commit a tort is unenforceable |
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Term
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Definition
permit one party to recover payments
o Party Protected by Statute
o Party Not Equally at Fault
o Partial Illegality |
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Term
| Know the general rules regarding a minor’s ability to contract, and the exception for necessary expenses |
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Definition
| A minor is someone under the age of majority (18 in most states) |
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Term
| Know the general rules regarding a minor’s ability to contract, and the exception for necessary expenses |
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Definition
| Contracts are voidable at the minor’s opinion; minor can get out of a contract until the age of 18, or shortly thereafter |
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Term
| Exception for Necessary Expenses – |
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Definition
| a minor is liable for the reasonable value of necessities (food, clothing, shelter) |
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Term
| Person Under Guardianship – |
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Definition
| contracts made by a person placed under guardianship by court are void |
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Term
| Mental Illness or Defect – |
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Definition
| a contract entered into by a mentally incompetent person (someone who is unable to understand the nature and consequences of his acts) is voidable |
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Term
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Definition
| a contract entered into by an intoxicated or impaired person is voidable |
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Term
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Definition
| affirmation of the entire contract; once they turn 18, they cant to continue contract and make it valid |
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Term
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Definition
| avoidance of the contract; minor can get out of contract until age of majority and reasonable time thereafter |
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Term
| Know the effects on enforceability of the various types of contracts with persons lacking capacity (void vs. voidable) |
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Definition
• Guardianship = VOID
• All others = VOIDABLE |
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