We do this regularly down here in Tennessee; however, we had a problem last year, with a "sore loser," that probaly doomed our tradition of having a liar's contest at our festival. The guy refused to concede! He actually got violent.
    He was telling some tale about going fishing with his coon hound, and the darn dog diving out of the boat, when the dog saw a bass. The dog never came back up, and the guy skinned down, dive-in, and found that the dog had treed a catfish in a hole under a stump. The guy had to start a fire to smoke the fish out.
    It didn't even place, and he got mad. He was a complete ass, screaming and cussing, threatening to sue, threatening me (the head judge) with a beating, etc.
    I told him that we settled these disputes internally, with a "liar's 'chicken' contest," an old mountain custom, which consists of the two parties in the dispute standing opposite to one another, close enough to kick one another. You take turns at kicking one another in the crotch, until one concedes. The disputer has to take the first shot, so I hauled off and gave him a knee right in the family jewels. Then, as he lay moaning on the ground, I conceded, and declared him the winner.