Cathy Agrees to Sell Her Daily Donut Shop to Ernie

question 29

Multiple Choice

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

• A) award Cathy damages.
• B) order Ernie to stop doing business.
• C) reform the covenant.
• D) prohibit both parties from operating donut shops.

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Definitions:

Party Achieving

The act of completing or fulfilling a task or goal, typically used in the context of an individual or group's success.

Neutral

An impartial or unbiased stance, without taking sides in a contest, dispute, or conflict.

Dysfunctional Conflict

Is destructive and hurts task performance.

Task Performance

Involves the execution and completion of specific duties or the achievement of goals within an assigned role or job.