Under Contract Law,a Provision in the Contract for Restricting Trade

question 37

Multiple Choice

Under contract law,a provision in the contract for restricting trade will be struck down by the court if it

• A)prevents a former employee from going into business for him- or herself in competition with his or her previous employer.
• B)unreasonably restricts competition.
• C)is a business partner competing with a former associate.
• D)reasonably protects the new owner of a business against the former owner.
• E)has no consequence.

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Definitions:

Hotels

Establishments that provide paid lodging on a short-term basis, offering a variety of amenities, which may include food services, event facilities, and recreational activities.

Peak Periods

Peak periods refer to times of heightened demand or activity within a business or market, often leading to increased sales, higher operational intensity, and the need for strategic planning to meet consumer needs.

Off-Peak Periods

Times outside of peak demand or usage intervals, often characterized by lower costs or lesser activity levels.

Capacity Shortage

A situation where the demand for a company's output exceeds its production capacity.