Statutory Illegality in Contracts: Legislation, Liability & Examples


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Pepe's Pay Day Loans decided to raise their interest rates from 7% to 86% after Christmas. Is this legal?

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1. Identify the statement that is true to Blue Laws.

2. Libby wanted to create a lottery to make money on some of her vintage clothing. Can she do this if her State does not allow gambling?

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About This Quiz & Worksheet

The quiz will test you on key terms related to statutory illegality in contracts. The questions will give you a term and you will need to select the correct definition. Other questions will give you particular scenarios. You will then be asked to apply the meaning of key terms and analyze the situation.

Quiz & Worksheet Goals

The quiz will test you on the following:

  • Pay day loans
  • Blue laws
  • Lotteries
  • Extortion
  • License needed to practice law or medicine

Skills Practiced

You will practice the following skills:

  • Making connections - use understanding of the concept of extortion
  • Interpreting information - verify that you can read information regarding blue laws and interpret it correctly
  • Information recall - access the knowledge you've gained regarding pay day loans
  • Knowledge application - use your knowledge to answer questions about a license needed to practice law or medicine

Additional Learning

Read the related lesson to learn more about this topic. The lesson is called Statutory Illegality in Contracts: Legislation, Liability & Examples, and it will cover the following:

  • Statutory illegality
  • Usury
  • Understanding licenses and their relation to contract law
  • Types of licenses and contracts