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LEB 320F - Unit 3 Exam Questions with 100% Correct Answers | Latest Update £7.11
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LEB 320F - Unit 3 Exam Questions with 100% Correct Answers | Latest Update

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  • LEB 320F

LEB 320F - Unit 3 Exam Questions with 100% Correct Answers | Latest Update When is a contract illegal? - -Contrary to that state's statutes -contrary to the public policy of that state's public policy, as defined by its courts Licensing Statutes - all states have licensing statutes, requiring ...

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  • December 14, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • LEB 320F
  • LEB 320F
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LEB 320F - Unit 3 Exam Questions with

100% Correct Answers | Latest Update


When is a contract illegal? - ✔✔-Contrary to that state's statutes

-contrary to the public policy of that state's public policy, as defined by its

courts

Licensing Statutes - ✔✔all states have licensing statutes, requiring the

persons who engage in certain professions, taxes, or businesses to be

licensed

Can an unlicensed person recover for services rendered under contract? -

✔✔-Most courts take the view that if a statute is regulatory (purpose being

that it protects the general public against unqualified persons) then the

contract is ILLEGAL and the recovery is DENIED

-HOWEVER... If the statute is felt to be merely revenue raising, recovery is

allowed

Contracts in restraint of Trade - ✔✔many contracts that unreasonably

restrain trade or competition in interstate commerce are in violation of one

or more federal antitrust statutes (example: Sherman Clayton Acts)

1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.

, Covenants Not to Compete (non competition agreements) - ✔✔agreements

in which one party promises not to compete with another



Lawful IF conditions are met:

-ancillary nature

-legitimate business interest that warrants temporary protection from

competition

-must be reasonably necessary to protect the promisee's legitimate interest

Ancillary Requirement - ✔✔one that is a subsidiary or auxiliary part of a

larger agreement

Contract for calling Sale of Business - ✔✔1) contract contains a promise by

the seller of the business not to engage in the same type of business within

a prescribed geographical area for a certain length of time after the sale



2) The interest to be protected (when a business is sold) relates to the

goodwill of the business - If seller is to violate promise, purchaser of the

business is entitled to an injunction against him




2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.

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