1. Nyoko signs a covenant not to compete with her employer, Midstate Distribution, Inc. The covenant will be enforced if it
A) does not require either party to obtain a business license.
B) is reasonable with respect to geographic area and time.
C) is supported by consideration.
D) none of the choices.
2. Volume Sales Corporation directs its marketing of discounted products to less educated consumers. In considering the unconscionability of a Volume contract, a court might look at
A) a buyer’s level of education.
B) the parties’ relative bargaining power.
C) the price of the products.
D) all of the choices.
3. Through fraudulent means, Hiram induces Imelda to sign a contract to build resort cabins on land that Hiram does not own. Imelda performs, but Hiram does not pay. When Imelda learns the truth, she may
A) do nothing with respect to the contract.
B) recover for the performance or its value.
C) recover for the performance only.
D) recover the value of the performance only.
4. Doug signs a contract with Elinor to kill Faris. Elinor pays Doug but he re¬fuses to perform. Elinor can
A) enforce the contract only if she is not going to aid in the crime.
B) not enforce the contract.
C) successfully sue Doug for the return of the money paid.
D) successfully sue Doug to perform.
5. A general contractor who suspects that a subcontractor’s bid is a mis¬take can still enforce the bid.
A) True
B) False
6. To rescind a contract is to cancel it.
A) True
B) False
7. Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides “like the wind.” Kurt’s statement is
A) duress.
B) fraud.
C) puffery.
D) undue influence.
8. Raylene, who is Seth’s guardian, convinces him to buy a certain parcel of land from Trevor at a greatly inflated price. Raylene may be liable for
A) duress.
B) fraud.
C) puffery.
D) undue influence.
10. Gary threatens physical harm to force Henry to sell his business, Imported Goods, Inc., to Gary for a below-market price. This is
A) duress.
B) fraud.
C) puffery.
D) undue influence.