1. Ramses owned an industrial supply business. He contracted to sell the business to Tut. Clause VI of their Agreement of Sale provided as follows: "In further consideration for the purchase, Ramses agrees that he shall not compete, either directly or indirectly, in the same business as is conducted by the corporation in its established territory." Two months after the sale, Ramses opened a competing business across the street from the business now owned by Tut, who brought suit, asking the court to close Ramses's business on the basis of Clause VI. What should the court decide? Why?
2. Elmo, a door-to-door salesman, entered into a contract to sell the Wilson family $320 worth of household products on credit. The Wilsons later learned that Elmo had failed to purchase a city license to make door-to-door sales and refused to pay him. May Elmo collect from the Wilsons? Why or why not?
3. Sara Holden, a fifteen-year-old junior at Mission Bay High School in San Diego, was injured during a campus hypnotism show sponsored by the PTA as a fund-raiser for the senior class. Hypnotism shows had been held annually since 1980, and Sara had seen the previous year's show. She was selected at random from a group of many volunteers. Her participation in the "Magic of the Mind Show" was conditioned on signing two release forms. Her father signed a form entitled "Mission Bay High School PTA Presents Dr. Karl Santo." Sara and her father both signed a form titled "Karl Santo Hypnotist," releasing Santo and the school district from all liability. During the course of the show, while apparently hypnotized, Sara slid from her chair and also fell to the floor about six times and was injured. She, through her father, then sued the school district. The Holdens claimed the release was contrary to public policy. Was the release contrary to public policy? Decide.
4. Case Analysis: Judy Myers and the Terminix International Company entered a contract in which Terminix agreed to inspect Myers's home and eliminate any termite problem found there. The service cost Myers an initial payment of $1,300 plus annual renewal fees of $85. Terminix failed to eradicate the termite infestation, causing more than $41,000 in damage to Myers's home. The contract contained a clause that required the parties to submit any disputes to arbitration under the American Arbitration Association (AAA). What the contract did not disclose was that Myers would be required to pay a filing fee to submit a claim to AAA. In this case, the filing fee amounted to $7,000. In a lawsuit filed for breach of contract, Myers asserted that the undisclosed filing fee requirement was unconscionable. Is Myers correct? Explain. Myers v. Terminix, 697 N.E.2d 277 (OH 1998)