Chad, Who Owns the Only Coffee Shop in Rivercity, Learns

question 65

Multiple Choice

Chad, who owns the only coffee shop in Rivercity, learns that Jose is about to open a competing coffee shop in the same small town, just a few blocks from Chad's. Chad offers Jose $10,000 in return for Jose's promise not to open a coffee shop in the Rivercity area for six months. Jose accepts the $10,000 but goes ahead with his plans, even though he had agreed not to do so. When Jose opens his coffee shop for business, Chad sues to enjoin Jose's continued operation or to recover the $10,000.​

• A)As this contract is not part of an otherwise legal contract it is an illegal anti-competition agreement and is not enforceable.
• B)As this contract is reasonable as to time and scope it is enforceable.
• C)Although the agreement is not enforceable Chad will get his $10,000 back because he did  what he promised.
• D)This is enforceable as a narrow exception to enforcement of anti-competitive clause

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Definitions:

Optimal Time

The most favorable or ideal time for achieving the best results or maximum efficiency in a given task or process.

Unchangeable Timetable

A schedule or plan that cannot be altered or modified.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into nerve impulses.

Middle Ear

The portion of the ear internal to the eardrum and external to the inner ear, containing three small bones that transmit sound vibrations to the inner ear.