Indicate whether each of the following statements is true or false by writing T or F in the answer column.
1. A contract is always legal and enforceable as long as the parties are competent and they have a mutual understanding. 1. __________
2. An agreement to perform an illegal act is void and unenforceable. 2. __________
3. All states prohibit all forms of gambling. 3. __________
4. Agreements that require the performance of acts against public policy are void.
5. Agreements that restrain marriage are valid if both parties agree to all provisions.
6. Agreements in restraint of trade can be prosecuted only under federal law.
7. The government will always prosecute companies that wield monopoly power because competition is always deemed in the public’s best interest. 7. __________
8. The Robinson-Patman Act prohibits price discrimination. 8. __________
9. The Sherman Antitrust Act prohibits agreements that tend to lessen competition.
10. Zoning regulations also may act as legal restraints of trade because they restrict where and how businesses may operate. 10. __________
11. Environmental and safety regulations seldom act as legal restraints of trade even though they limit and restrict how a firm may operate. 11. __________