Mel Owns a Neighborhood Grocery Store That He Would Like

question 15

Essay

Mel owns a neighborhood grocery store that he would like to sell. Katrina is interested in purchasing the business, but she is concerned because she knows that Mel has built up a lot of goodwill over the years, and she wonders whether Mel might not just open another store down the block and take all of the business from the old store with him. Katrina asks for and receives from Mel a clause in the sales agreement that Mel will not open another grocery store within a 150-mile radius of the old store for a period of at least ten years.
a. What is this agreement called?
b. Is the negotiated clause a valid one? Explain why or why not.
c. What guidelines would a court ordinarily use in determining whether to enforce such a clause?
_a. ^{The agreement is a covenant in restraint of trade in connection with the sale of a}

---

Definitions:

Biochemical Cause

A reason for a condition or disease based on chemical processes and substances within the body.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting heart rate, blood pressure, and glucose metabolism.

Acetylcholine

Acetylcholine is a neurotransmitter involved in many functions including muscle activation, memory, and alertness.

Social-cognitive Theorists

Scholars who focus on how people learn through observing others and the effects of cognitive processes on social behavior.