Rapido Pizza,Inc

question 12

Essay

Rapido Pizza,Inc. ,is a close corporation with only two shareholders,Sunny and Tomas.Rapido is in the pizza-delivery business.Two other such firms serve the same market,but Rapido controls a 75 percent share.Sunny and Tomas agree that Tomas will buy all of Sunny's Rapido shares.As a condition of the transaction,Sunny agrees not to open a competing pizza-delivery business within a seventy-mile radius or become employed by any rival firm within the same designated area.The covenant is to last five years.Is this an unreasonable restraint of trade Would a court likely declare unenforceable Sunny's promise not to compete

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