A Covenant That Is Attached to All Houses in a Neighborhood

question 159

Multiple Choice

A covenant that is attached to all houses in a neighborhood built in the 1950s states that the houses may not be sold to "members of any minority race." This covenant is:

• A) enforceable since it was voluntarily agreed to by the buyers and sellers
• B) not favored by public policy and so will expire when the houses are torn down
• C) in violation of public policy and so not enforceable
• D) in violation of public policy and, under federal law, requires home owners to pay $1,000 a year fines until removed
• E) none of the other choices

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Definitions:

Total Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Least Elastic Supply

A situation in the market where the supply of a product or service is least responsive to changes in price.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by averaging the start and end points of a range.

Drug Interdiction

The policy or practice of preventing the importation, trafficking, and use of illegal drugs by enforcement or military means.