1. Sam saw his good friend Nick at the bar on a Friday night. Nick was so drunk, that he did not know the nature and consequences of his actions. While they were at the bar, Nick signed a contract agreeing to sell Sam his bike for $100. The next morning, Sam knocked on Nick's door, showed Nick the contract, and gave him $100. Nick was hungover and did not feel good, and did not want to deal with Sam. He read the contract, said, "I guess a deal is a deal" and gave Sam his bike. Two weeks later, Nick decided that he wanted to avoid the contract. He took the money back to Sam and demanded his bike back. Sam refused.

Question:

Based on the situation above, who would win and why? Explain in detail with relevant law.

2. Gracie was a famous singer. Katie hired Gracie to sing every Friday and Saturday night at Katie's bar in Detroit, Michigan. At the time of her contract, Gracie signed a non-competition agreement that stated:

I agree that for a period of 1 year after termination of my employment as a singer, I will not work as a singer, owner, or in any other capacity, at any bar located in the state of Michigan.

After six months, Katie fired Gracie, and Gracie took a new job as a singer at Lexie's bar on Mackinac Island, Michigan. Katie sued Gracie, seeking to enforce the non-competition agreement.

Question:

Based on the situation above, assume that you are a Michigan judge that is evaluating Katie's case. Write a couple of paragraphs that explain in detail the applicable Michigan law and discuss why or why not you would enforce the agreement as written. (You need to discuss the three factors and why each is, or is not, reasonable, and then discuss what your options are as the judge).