Multiple choice

1. At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market - Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be:

 a. The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market. 

b. The company would not be deemed guilty of monopolization of commerce. 

c. The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer). 

2. Jim and Gail contract for the sale of 500 computers. The agreement states, "The obligations of the parties are conditional on Gail obtaining financing from First Bank by August 1." This clause likely is

a.  a condition precedent. 

b. a condition subsequent. 

c. a concurrent condition. 

d. not a condition. 

3. To acquire the ownership of a strip of waterfront property by adverse possession, Glen must occupy the property exclusively, continuously, and peaceably for a specified period of time

a. in an open and adverse manner. 

b. until the owner files suit. 

c. without the owner's knowledge. 

d. with the state's permission. 

4. Rajiv, the owner of a very nice and successful Indian restaurant, House of India, in western Broward County, is going to retire. He plans to sell the business, together with good will and recipes, and with the current staff remaining, to the Patel family, who are new to the restaurant business. Although Rajiv says he is going back to India, the Patel family members are not so sure that Rajiv will return to Florida and open up a competing restaurant business in the near vicinity, thereby drawing back his old customers to the detriment of the Patel family. Accordingly, as part of the contract for the sale of the business, a covenant-not-to-compete clause is included wherein Rajiv promises not to compete directly or indirectly in the Indian restaurant business for two years and in a radius of 10 miles of the House of India. The likely legal effect of this covenant is:

 a. The covenant is illegal and void since it is a restraint of trade in violation of the Sherman Anti-trust Act. 

b. The covenant is illegal and void since it is against public policy, which favors competition. 

c. The covenant is legal since it appears reasonable in time and place. 

d. The covenant is illegal since it seems unreasonable in time and place.