Ralph Davis Owned a Frozen Yogurt Shop That Was Quite

question 112

Multiple Choice

Ralph Davis owned a frozen yogurt shop that was quite successful because it was the only shop within a three-mile radius of three high schools.  The high school students and their families were his customer base.  Ralph sold the yogurt shop to Denise Cole.  Their agreement provided that Ralph would not start another yogurt shop within a five-mile radius of Denise's shop.​ ​What would happen if a court found that the five-mile radius was too geographically broad?

• A)The covenant not to compete is void.
• B)The contract for the sale of the shop is void.
• C)Ralph can start a shop anywhere he wants because of the problem with the too-broad clause.
• D)The court can enforce the clause for a smaller geographic area.

---

Definitions:

Revenue Model

The framework for generating financial income from the business operations, detailing the sources of revenue and the process of how it is earned.

Costs of Goods Sold

The out-of-pocket costs associated with the production of a company's sold goods, encompassing labor and materials.

Operating Expenses

The costs associated with running the day-to-day operations of a business.

Freemium Program

A commercial strategy where fundamental services are offered at no cost, but premium functionalities require payment.