Business Law - Chapter 13 Already Passed

A contract most likely will be declared unconscionable if: {Ans: C. It is oppressive and the weaker party did not fully understand the consequences of the agreement}An exculpatory clause is generally unenforceable when: {Ans: B. It involves public transportation}To raise revenues, the City of St. Cloud required restaurants to purchase a special permit if they wanted to serve food in an open-air patio. While at Hola Taco, a restaurant in St. Cloud, a customer notices that Hola Taco's permit expired. Because Hola's Taco's permit expired, the customer is not legally required to pay for her food. {Ans: False}A gambling contract is legal unless it is specifically prohibited by state statute. {Ans: False}Which of the following exculpatory clauses will most likely be enforceable? {Ans: A. An exculpatory clause that relieves a riding stable of negligence}Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000. {Ans: False}