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:

TEAM Act

Legislation aimed at modifying labor law regulations to encourage cooperation and collective bargaining between employees and employers within a team-based work environment.

Labor-Management Committees

Groups formed by representatives of both labor and management to address and resolve workplace issues, improve labor relations, and enhance communication.

Strategic Partners

Entities that form a partnership in order to achieve common goals or undertake specific projects with mutual benefits.

Protecting Workers

Efforts and regulations designed to ensure the safety, rights, and well-being of employees in the workplace.