Question

16 multiple choice 4 points barb has been a childrens day care provider for several years in the small town of saliton. she has decided to give it all up and move to the big city for excitement and adventure. she sells her business to ken, agreeing not to open a competing business within 25 miles of saliton for a period of one year. after six months of the big city life, barb is broke and moves back to saliton. she opens a small day care business. ken sues on the noncompete clause. what is the most likely result? ken wins. the agreement is enforceable. barb wins. the agreement is denying her the right to do the only thing she knows how to do. barb wins. the agreement is not enforceable because it is not ancillary to a legitimate bargain. barb wins. the agreement is not reasonable as to time.

Explanation:

Non - compete clauses are generally enforceable if they are reasonable in terms of time, geographical scope, and are ancillary to a legitimate bargain. Here, the non - compete clause is for one year (a reasonable time) and 25 miles (a reasonable geographical scope) and is ancillary to the sale of the business (a legitimate bargain).

Answer:

Ken wins. The agreement is enforceable.