Because she was moving to Kingston, Lucy wanted to sell the furniture store that she had created in Burlington. Chas was interested in buying the business, but he insisted that the contract must include a non-compete clause. Lucy agreed, the contract was created, and Chas became the new owner of the store in Burlington. A year later, however, he learned that Lucy had opened a new furniture store in Kingston and was doing great business. Chas then sued Lucy for breaking the non-compete clause. Which of the following statements is most likely to be TRUE?

1.The non-compete clause will be enforced unless Lucy can prove that the process leading up to the contract was defective in some way.

2.All non-compete clauses are contrary to public policy and therefore void.

3.As long as Lucy received independent legal advice before she signed the contract, the non-compete clause will be enforced.

4.The non-compete clause may be enforced as long as it is reasonable in terms of the geographical area and the time period that it covers

5.The non-compete clause will be enforced as long as Lucy received special consideration in exchange for it.

On June 1, Lauto Inc entered into acontract agreed to buy a Pupmobile LX from Dos Motors Ltd for $25,000.Payment of the price and delivery of the vehicle were scheduled to occur on July 15. On July 1, however, Dos informed Lauto that it had carelessly crushed its only Pupmobile LX with an industrial-sized garbage bin. Dos apologized profusely and explained that it did not have another one in stock. It also informed Lauto that, because a Pupmobile LX had recently appeared in a highly successful movie, such cars were in great demand. "If you still want one," said the manager at Dos, "you had better act quickly. I'll expect that they will start to go up in value very quickly." Between July 1 and July 10, Lauto could have purchaser a Pupmobile LX from another dealer for $30,000. Nevertheless, Lauto waited until July 11 before buying a Pupmobile LX from Tertius Motors Ltd for $35,000. By July 15, the market value of such vehicles had increased to $40,000. A court would probably order Dos to pay Lauto

1.$25,000

2.$0

3.$15,000

4.$5,000

5.$10,000