Canvas

Question $16$

$2\mathrm{.}5$ pts

Tran purchased a successful "Big Self$-$Storage" facility in California under a purchase agreement that contained a non$-$compete agreement prohibiting the seller from operating a self$-$storage facility within a $10-$mile radius of the facility for five years. Later, the seller opens a competing self$-$storage facility two miles away, causing Tran to suffer a significant loss in profits. In Tran's lawsuit against the seller, which of the following is true

Seller's best defense to the lawsuit is that non$-$compete agreements are now unenforceable in California under CA Business & Prof. Code $16600\mathrm{.}5.$

Tran's best argument is that seller violated the implied covenant of good faith and fair dealing.

Tran's best argument is that seller violated the Federal Trade Commission's Unfair Competition Rule.

Tran's best argument is that seller breached the express non$-$compete terms of the purchase agreement.

Question $17$

$2\mathrm{.}5$ pts

The members of Slay$-$It$,$ LLC wish to retain company profits in order to build reserves for possible expansion of operations. To do so$,$ they may opt for the LLC to be taxed as a

sole proprietorship

non$-$profit corporation

partnership

corporation