Author Question: Judith is a CPA with an excellent reputation and client base. She sells her tax preparation business ... (Read 84 times)

nramada · **on:** Jun 24, 2018

Judith is a CPA with an excellent reputation and client base. She sells her tax preparation business to Shawn, and the sales contract includes a noncompete clause restricting Judith from opening a similar business for one year within a 10-mile radius of her former office. If she opens a tax preparation office five miles away after one year, a court would probably
A) grant an injunction barring her from operating the new office.
B) order confiscation of all of her new client files and turn them over to Shawn.
C) refuse to become involved, as the noncompete clause was illegal.
D) refuse to enforce the noncompete clause, as it is unreasonable regarding time and geographic area.

Question 2

When Mohammed was hired by Pomico, Inc, he signed the following agreement, Upon termination of my employment with Pomico, I agree not to work for a competing company within 20 miles of Pomico's headquarters for one year. This agreement, important to protecting secret information developed in the employer's business, is
A) an unenforceable exculpatory agreement.
B) an unenforceable usurious agreement.
C) an enforceable bailment agreement.
D) an enforceable agreement not to compete.