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.
4. __________
5. Agreements that restrain marriage are valid if both parties agree to all provisions.
5. __________
6. Agreements in restraint of trade can be prosecuted only under federal law.
6. __________
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.
9. __________
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. __________