My favorite example of chudo involves a couple of friends of mine who were at a bar/restaurant in Texas. They sat down and ordered. Ross went off to the bathroom and Marti began watching the people surrounding her. She noticed two somewhat drunk cowboys who were arguing and just about to start throwing punches at each other. Marti thought to herself, "Aah, I see that something is about to happen, I'll move to the other side of the table and into the corner where I'll be safe should a fight break out." To Marti's amazement, she then saw a waitress carrying plates walk right between the two enraged cowboys.
The moral: The waitress practiced poor chudo, Marti did much better, but Ross of course, practiced the best chudo by leaving before the situation became desperate.