As Part of a Large Multinational Corporation, You Are Working

question 20

Essay

As part of a large multinational corporation, you are working on a deal to buy a small company from a group of young upstarts who will all benefit handsomely from the transaction.It is your custom to include a restrictive covenant in such contracts to prevent such young upstarts from directly competing with the company they just sold.Explain the approach taken by courts to covenants in restraint of trade and then provide an example of a restrictive covenant that is likely to be upheld if challenged in court, and an example of one that is likely to be struck down if challenged in court.

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Definitions:

No Load

A condition where a power source or device is operating without any load or consumption, indicating its behavior in an ideal or unloaded state.

Square Wave Voltage

A waveform of voltage that switches between high and low states, creating a square shape.

DC Average

The average value of a direct current (DC) signal over a period of time, usually calculated by integrating the signal over that period and dividing by the period's length.

Positive Pulses

Positive pulses are brief increases in electrical voltage or current that move from a baseline towards a higher value in a positive direction.