Jan Opens a Sandwich Shop Across the Street from Another

question 89

Essay

Jan opens a sandwich shop across the street from another sandwich shop run by Amy.Amy is disturbed by this competition,and she agrees to pay Jan $5,000,in exchange for Jan's promise to quit the business and not to engage in a similar business within ten-mile radius of Amy's business.Is this contract legal and enforceable? Why or why not? If the agreement is not enforceable,how might Jan and Amy restructure it to increase its chances of being legal?

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Definitions:

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, amplifying both gains and losses.

Earnings Per Share (EPS)

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock.

EBIT

EBIT stands for earnings before interest and taxes, and it's a measure of a firm's profit that includes all expenses except interest and income tax expenses.