大四上商法上課課件lawch

1、LegalityCHAPTER 12Quote of the Day“Gambling is the child of avarice, the brother of iniquity, and the father of mischief.”George Washington, United States PresidentWageringContracts that May Violate a StatuteWagersInvestmentsInsuranceLicensing StatutesUsuryThese types of contracts will be discussed

2、further on the next slides.WagersA gambling contract is illegal unless it is specifically authorized by state statute.In some cases, wagers have been disguised as “investments” where the gambler places a bet on the price of stock, but never actually buys the stock.Someone taking out a policy on the

3、life of another must have an insurable interest in that person - or else it es a “wager” on their life.Licensing StatutesWhen a licensing requirement protects the public, any contract made by an unlicensed worker is unenforceable.When a licensing requirement is designed merely to raise revenue, a co

4、ntract made by an unlicensed person is generally enforceable.Usury laws prohibit charging excess interest on loans.UsuryContracts that May Violate Public PolicyRestraint of TradeExculpatory ClausesBailment CasesUnconscionable ContractsAdhesion ContractsThese types of contracts will be discussed furt

5、her on the next slides.Unfair dealingRestraint of TradeTo be valid, an agreement not to compete must be ancillary to a legitimate bargain.Sale of a BusinessWhen a pete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.Em

6、ploymentA pete clause in an employment contract is enforceable when it protects trade secrets, confidential information or customer lists developed over a long period of time.Exculpatory ClausesGenerally enforceable when the affected activity is in the public interest, such as medical care, public t

7、ransportation, or some essential service.Generally unenforceable when it attempts to exclude an intentional tort or gross negligence.the parties have generally unequal bargaining power.it is not clearly written and readily visible.Part of a contract that attempts to release you from liability for in

8、jury to another party.Bailment Cases Bailment means giving possession and control of personal property to another person.The person giving up possession is the bailor, and the one accepting possession is the bailee.Unconscionable ContractsAn unconscionable contract is one that a court refuses to enf

9、orce because of fundamental unfairness.The two factors that most often led a court to find unconscionability were: oppression - meaning that one party used its superior power to force a contract on the weaker party; and surprise -meaning that the weaker party did not fully understand the consequences of its agreement. Adhesion ContractsAdhesion contracts are standard form contracts prepared by one party and given to the other on a “take it or leave it” basis.They are generally enforced when the two parties are of equal power, but when the parties are unequal, the contract may be ruled u