Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Legality
1
Summary of facts
How did the lower court
rule?
Whats the issue?
Vote
Licensing Statutes
When a licensing requirement is designed:
to protect the public, any contract
made by an unlicensed
worker is unenforceable.
merely to raise revenue, a contract
made by an unlicensed person is generally
enforceable.
Summary of facts
Whats the issue?
What was the courts ruling?
Usury
Usury laws prohibit charging excess
interest on loans.
The rules are very complicated
Noncompetition Agreements
Sale of a Business
When a noncompetition agreement is
ancillary to the sale of a business, it is
enforceable if reasonable in:
1. Time
2. Geographic area, and
3. Scope of activity.
9
Noncompetition Agreements
Employment Contracts
A noncompete clause in an employment
contract is generally enforceable only
if it is:
1. Essential to the employer
2. Fair to the employee, and
3. Harmless to the general public
10
Non-competition employment
contracts
MORE likely to be enforced when it
involves:
Trade secrets learned on the job
Confidential information
learned on the job
Customer lists not readily available from
public sources
Limited time & limited geographic scope
Non-competition employment
contracts
LESS likely to be enforced when it
involves:
Exculpatory Clauses
Clauses that attempt to release (in advance) a
party from liability for ordinary negligence in
the event
of an injury to another
party or their property.
Generally unenforceable if it
attempts to exclude an
intentional tort or gross negligence.
14
Exculpatory Clauses
Generally unenforceable:
If the underlying contract is for a service
that is essential to most or all
members of modern society,
or
When the parties have greatly unequal
bargaining power, or
When the clause is not clearly written and
readily visible in the contract.
15
Ransburg v. Richards
Summary of facts
Whats the issue?
Adhesion Contracts
A contract offered on a standard form on a take it
or leave it basis
Often contain exculpatory
clauses
Strong evidence of unequal
bargaining power
Court will scrutinize contract
17
Unconscionable Contracts
A contract that a court refuses to enforce
because of fundamental unfairness