I've followed this from the start, but haven't posted anything since I've never been in such a situation. I just kept thinking that I was glad it wasn't me, and it's as well for your niece that it wasn't me.

You say that she is good at book learning and Karen suggested writing up a list of rules. Some people need to have things written down in order to assimilate them well so I agree with others that this is your best approach. Go into detail, she must be used to written details if she has passed her pharmacy tech. exam. If you have to, write out a response if she doesn't follow the rules. "On September 19, you failed to wash your laundry. You accepted that you have to do your own laundry when you signed the agreement."

She reminds me of a co-worker who is very book smart but utterly hopeless about remembering details, preferring to lean on me to go over them time after time. I don't. I refer her to the written instructions. She can discuss philosphy with professors and then can't remember in which order to emcee a meeting, even though she's done it 12 times before. She needs to lean on people. And I think she forgets details that simply don't interest her. Perhaps your niece is conveniently "forgetting" things she doesn't want to do.