Because She Was Moving to Calgary, Lucy Wanted to Sell

question 26

Multiple Choice

Because she was moving to Calgary, Lucy wanted to sell the furniture store that she had created in Edmonton.Chas was interested in buying the business, but he insisted that the contract must include a non-compete clause.Lucy agreed, the contract was created, and Chas became the new owner of the store in Edmonton.A year later, however, he learned that Lucy had opened a new furniture store in Calgary and was doing great business.Chas then sued Lucy for breaking the non-compete clause.Which of the following statements is most likely to be TRUE?

• A)The non-compete clause will be enforced unless Lucy can prove that the process leading up to the contract was defective in some way.
• B)All non-compete clauses are contrary to public policy and therefore void.
• C)As long as Lucy received independent legal advice before she signed the contract, the non-compete clause will be enforced.
• D)The non-compete clause may be enforced as long as it is reasonable in terms of the geographical area and the time period that it covers.
• E)The non-compete clause will be enforced as long as Lucy received special consideration in exchange for it.

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Definitions:

Maximum Amount

The highest possible quantity or level that can be reached or allowed.

Leisure Time

Free time that an individual can spend away from work, business, or domestic chores, often used for relaxation, recreation, or hobbies.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that can be produced using limited resources.

Operate Inside

To conduct activities within a certain area or system.