A Provision in a Contract for the Sale and Purchase

question 129

Multiple Choice

A provision in a contract for the sale and purchase of a business reads as follows: "The vendor (Jones) shall not,directly or indirectly,in any capacity whatsoever,carry on a similar business in any location for one year." Six months later,Kates (the buyer) found that Jones was competing directly by opening up a similar business,contrary to the contract drafted by Kates.Kates sued Jones for breach of contract,namely,breach of the restrictive covenant.Which of the following best describes the legal position of the parties?

• A)This provision is in restraint of trade and causes the whole contract to be void.
• B)Agreements such as these are always binding,being the result of a free bargain between the parties.
• C)Although this type of provision is illegal,this particular one would be enforceable because it is reasonable between the parties and not contrary to public policy.
• D)Such provisions are always void,being an illegal restraint of trade.
• E)Although this provision would be void,the remainder of the contract for the sale of the business would be enforceable.

Analyze how world prices influence domestic exports and imports.

Recognize and categorize different forms of trade barriers and their implications.

Calculate the effects of tariffs and quotas on domestic supply, demand, and government revenue.

Evaluate the consequences of trade policies on consumers, producers, and government.

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Definitions:

Electoral Votes

Votes cast by members of the electoral college, who are selected by voters in each U.S. state, that determine the outcome of presidential elections.

John Quincy Adams

John Quincy Adams was the sixth President of the United States (1825–1829), known for his diplomatic contributions before his presidency and his post-presidential career in the House of Representatives, where he was a strong advocate for civil liberties and abolitionism.

Andrew Jackson

The seventh President of the United States (1829–1837) known for his populist policies and for being the founder of the Democratic Party.

Spoils System

A practice where government jobs are given to political supporters and friends, often criticized for rewarding loyalty over merit.