Lora Signs a Covenant Not to Compete with Her Employer,Midstate

question 60

Multiple Choice

Lora signs a covenant not to compete with her employer,Midstate Distribution,Inc.The covenant will be enforced if it

• A)does not require either party to obtain a business license.
• B)is reasonable with respect to geographic area and time.
• C)is supported by consideration.
• D)none of the choices.

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Definitions:

Price Ceilings

Government-imposed limits on how high prices for essential goods or services can be, intended to protect consumers from price gouging during shortages or crises.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The complete volume of a merchandise or service buyers intend to acquire at a determined price.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, leading to market stability.