Not Only Must a Non-Competition Clause Be Reasonable Between the Parties

question 97

True/False

Not only must a non-competition clause be reasonable between the parties, but the party trying to enforce it must show that the clause is necessary to protect some proprietary interest.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized as certain costs necessary to operate a business.

Assets Increase

A rise in the company's resources, resulting from transactions that bring future economic benefits to the entity.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered cash equivalents.