CP Contracts & Business Law Flashcards
6 cards from real CP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CP Contracts & Business Law flashcards as text
California's Unfair Competition Law (UCL), Business and Professions Code § 17200, prohibits business acts that are:
Answer: Unlawful, unfair, or fraudulent
California's UCL has three independent prongs—unlawful, unfair, and fraudulent—any one of which can support a cause of action.
An employment contract in California containing a non-compete clause is generally:
Answer: Void and unenforceable under California Business and Professions Code § 16600
California Business and Professions Code § 16600 broadly voids non-compete agreements in employment contracts, with very narrow statutory exceptions.
A contract that is 'voidable' differs from a 'void' contract in that:
Answer: A voidable contract can be affirmed or rescinded by the injured party, while a void contract has no legal effect from its inception
A void contract is unenforceable by either party from the start; a voidable contract is valid unless the party with the right to avoid it (e.g., a minor) chooses to disaffirm.
Under California Commercial Code § 2-207 (Battle of the Forms), when a definite acceptance adds or changes terms:
Answer: A contract is formed on the offeror's original terms, with additional terms treated as proposals between merchants
Under UCC § 2-207 as adopted in California, a definite acceptance forms a contract; between merchants, additional terms become part of the contract unless they materially alter it or the offeror objects.
Which remedy is available under California contract law when monetary damages are inadequate because the subject matter is unique?
Answer: Specific performance
Specific performance is an equitable remedy ordering a party to perform a contract when the subject matter is unique (such as real property) and money damages are insufficient.
California's Consumer Legal Remedies Act (CLRA), Civil Code § 1750 et seq., applies primarily to:
Answer: Unfair or deceptive practices in consumer transactions for goods or services
The CLRA prohibits unfair and deceptive acts in transactions involving the sale or lease of goods or services to consumers for personal, family, or household purposes.