As Part of a Large Multinational Corporation,you Are Working on a Deal

question 31

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:

Residual Volume

The amount of air remaining in the lungs after a forceful exhalation, ensuring that the lungs do not collapse.

Maximal Expiration

The act of exhaling as forcefully and completely as possible to measure lung function.

Bronchus

A primary branch of the trachea that conducts air into the lungs, where it divides into smaller branches.

Lung

A pair of organs situated within the ribcage, responsible for the process of respiration through the exchange of oxygen and carbon dioxide.