III. George owned a bookstore located in Brooklyn and agreed to sell the business to Fred for a purchase price of $250,000, which was allocated to the following business assets:

Building - $100,000

Fixtures - $50,000

Accounts Receivable - $50,000

Goodwill - $50,000

In connection with the sale of the bookstore, George agreed that he would not open a competing bookstore for a period of two years anywhere in the State of New York.

(a) Six months after Fred bought the bookstore from George, George opened a new bookstore five blocks away. Fred sues George, judgment for whom? Explain. (15 points)

(b) Would it make a difference if the store that George opens is located upstate in Albany, NY and not near the Brooklyn location even though they are both in the State of New York? Explain. (15 points)