Question

Cheap Motorcycle. Tony, a hateful, disgruntled, business law teacher notices that a student, Peter, who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass; and, in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is true regarding the yard mowing agreement?

A. It is enforceable.

B. It is not enforceable because it is unconscionable.

C. It is not enforceable because a teacher and student are involved.

D. It is not enforceable unless it can be proven that Peter is over the age of twenty-five.

E. It is not enforceable unless Tony also signs a binding contract to pass Peter even if he makes terrible grades.

Answer

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