1. Malcolm pays a bribe of $5,000 to Dustin, a county assessor, to get a low assessment on his estate. Dustin turns in a very high assessment. Malcolm sues Dustin to get back his $5,000. Malcolm may get back his $5,000 or have his assessment lowered because he has already performed his part of the contract.
A. The general rule with regard to illegal contracts is that the parties are to be put back where they started
B. Malcolm can get back his $5,000.
C. Malcolm can get back his $5,000 because it is against public policy for county assessors to accept bribes.
D. Malcolm cannot get back his $5,000; the courts do not aid either party to this contract.

2. Loral Corporation was awarded a $6,000,000 contract by the U.S. Navy for a production of radar sets. Loral then awarded a subcontract for construction of gear components to Austin Instrumental, Inc. Subsequently Loral asked for bids on a second group of gear components. Austin stated that it would cease delivery under the existing contract unless it received the contract for the second group of components at increased prices for both groups. Loral refused and Austin stopped delivery. Loral was then unable to find another manufacturer who could produce the gears in time so it agreed to the demands of Austin. After the gears were completed, Loral refused to pay the increased price. The Court finds for Loral and rules that there is no contract. The best reason is:

A.unconscionability
B.fraud
C. duress
D. past consideration
E. incapacity

Answer rating: 100% (QA)

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