The courts have ruled that it is a reasonable restraint of trade (and therefore permissible) for the

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The courts have ruled that it is a reasonable restraint of trade

(and therefore permissible) for the owner of a business to sell his business and sign a contract with the new owner saying that he will not compete with her within a vicinity of, say, 100 miles, for a period of, say, 5 years. If this type of contract is a reasonable restraint of trade, can you give an example of what you would consider an unreasonable restraint of trade? Explain how you decide what is a reasonable restraint of trade and what isn’t.

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Microeconomics

ISBN: 9780357720639

14th Edition

Authors: Roger A. Arnold, Daniel R Arnold, David H Arnold

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