Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adina owns Yogis Yogurt in Fort Smith, Arkansas. Adina sells the yogurt shop to Dagmar. The contract for the sale of the business includes a

Adina owns Yogis Yogurt in Fort Smith, Arkansas. Adina sells the yogurt shop to Dagmar. The contract for the sale of the business includes a clause that prohibits Adina from owning or working in any restaurant in Arkansas for two years from the date of the sale. One year after the sale is completed, Adina opens a steakhouse in West Memphis, Arkansas, which is 300 miles from Fort Smith. If Dagmar sues Adina for breaching the terms of the contract:

a. Dagmar will probably lose because the covenant not to compete is too restrictive.

b. Dagmar will probably win because covenants not to compete are always enforceable.

c. Dagmar will probably win because Adina opened a new restaurant in Arkansas within two years of the sale of Yogis Yogurt and this was directly prohibited by the contract.

d. Dagmar will probably lose because covenants not to compete are never enforceable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management Competitiveness and Globalization, Concepts and Cases

Authors: Michael A.Hitt, R.Duane Ireland, Robert E.Hoskisson

11th edition

978-1285425177, 1285425170, 978-1305200333, 978-1285425184

More Books

Students also viewed these General Management questions