When One or Both Parties to an Illegal Bargain Are

question 8

Multiple Choice

When one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal, the court is most likely to:

• A) never allow either party to recover damages for breach of the agreement.
• B) allow recovery for performance rendered before the parties learned of the illegality.
• C) declare the bargain unconscionable.
• D) regard the contract a serious threat to public welfare and declare it void.

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Definitions:

External Equity

Refers to an organization’s compensation strategy being competitive with what other employers offer for similar jobs in the market.

Wage Curve

A graphical representation showing the relationship between the wage rate and the level of unemployment in an economy.

Relative Worth

The perceived value or importance of something in comparison to other items or factors.

Wage Rates

The fixed amount of compensation paid to an employee per unit of time, often per hour or day.