THINK ABOUT LEGAL CONCEPTS 1. Contracts in which one person pays another to commit a felony are unenforceable.True or False 2. Charging intereston a loan of money at a rate than allowed by law is called (a) com- pounding a crime (b)wagering (c) loan kiting (d) usury 3. Typically, illegal contracts are held by the and unenforceable. (a) valid (b) voldable (c) vold 4. Alottery has three elements prize chance,and consideration. True or False 5. Which of the following act? (a) the Shermar Act(b) the Commun Act (c) the Feder al Trade Commizeion Pas (d) all of the above are antimustachs 6. If you agreed to pays sure that she testded foryouaratria this some ment would be unen forceable.True or False 7. Aparty to an Megal contract may be able to either enforce the agreement or obtain reading. tion if he or she (a) is (b) is a protected Wotim (c) resolines badorets illegal act occurs (d)all of the above

## Step1<br />The first question is about the enforceability of contracts where one person pays another to commit a felony. The statement is true because such contracts are considered illegal and unenforceable.<br /><br />## Step2<br />The second question is about the term for charging interest on a loan at a rate higher than allowed by law. The correct term for this is 'usury'.<br /><br />## Step3<br />The third question is about the status of illegal contracts. The correct term for this is 'void'.<br /><br />## Step4<br />The fourth question is about the elements of a lottery. The statement is true because a lottery indeed has three elements: a prize, chance, and consideration.<br /><br />## Step5<br />The fifth question is about the known antitrust acts. The correct answer is 'all of the above' because all the listed acts are known antitrust acts.<br /><br />## Step6<br />The sixth question is about the enforceability of a contract where one party agrees to pay another party to ensure that she testifies in court. The statement is false because such contracts are considered illegal and unenforceable.<br /><br />## Step7<br />The seventh question is about the options available to a party to an illegal contract. The correct answer is 'all of the above' because all the listed options are possible outcomes for a party to an illegal contract.