Why Are Contracts That Unduly Interfere with the Ability to Earn

question 50

Multiple Choice

Why are contracts that unduly interfere with the ability to earn a livelihood or reduce competition generally unenforceable in common law?

• A) They contravene the rules of goodwill contained in the Competition Act.
• B) They cannot be enforced because they are contrary to statues and public policy.
• C) They contravene the rules of fairness contained in the Consumer Protection Act.
• D) They are contrary to the community's common sense and common conscience.

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Definitions:

Profits

The financial gain realized when the revenue earned from economic activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Firms

Business entities engaged in commercial, industrial, or professional activities, either for profit or as a nonprofit.

Perfectly Competitive

a market structure characterized by a large number of small firms, a homogeneous product, perfect information, and no barriers to entry or exit.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell their invention for a specific period of time.