A Contract Not to Compete Is Valid in Which of the Following

question 10

Multiple Choice

A contract not to compete is valid in which of the following instances?

• A)Two large businesses dividing sales territory for themselves to avoid competition
• B)The buyer of a business prohibiting the seller from engaging in the same business in a certain town
• C)A business agreeing not to operate in a state to eliminate competition in that state
• D)Three businesses agreeing to take turns providing services to a community on a monthly basis in order to avoid competition.

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Definitions:

Employment Flexibility

Refers to the adaptability of the workforce and employment conditions, allowing for changes in hours, location, and job duties.

Functional Flexibility

The ability of an organization to manage and utilize its workforce in a way that can quickly respond to changes without significant additional costs.

Continuous Process Strategy

An approach focusing on improving and optimizing ongoing operations and processes for efficiency and effectiveness.

Kaizen

A Japanese term meaning "change for better," referring to the practice of continuous improvement in all aspects of life, especially in business efficiency and quality.