Judith Is a CPA with an Excellent Reputation and Client

question 16

Multiple Choice

Judith is a CPA with an excellent reputation and client base.She sells her tax preparation business to Shawn,and the sales contract includes a non-compete clause restricting Judith from opening a similar business for one year within a 10-mile radius of her former office.If she opens a tax preparation office five miles away after one year,a court would probably

• A)grant an injunction barring her from operating the new office.
• B)order confiscation of all of her new client files and turn them over to Shawn.
• C)refuse to become involved,as the non-compete clause was illegal.
• D)refuse to enforce the non-compete clause,as it is unreasonable regarding time and geographic area.