Koko Signs a Covenant Not to Compete as Part of a Sale

question 16

Multiple Choice

Koko signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Laurel Valley Medico,Inc. ,in exchange for a bonus payment.The covenant is most likely enforceable by

• A)both parties.
• B)Koko,but not Laurel Valley.
• C)Laurel Valley,but not Koko.
• D)no one.

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Definitions:

Unilateral Action

An action or decision made by one party or nation without the agreement or cooperation of others.

Shared Power Strategy

An approach in decision-making or governance where power and responsibilities are distributed among various stakeholders or groups, rather than centralized.

Reward Power

The authority or influence one possesses due to their ability to give rewards to others for compliance or desirable behaviors.

Socio-Cultural Norms

The shared expectations and rules that guide behavior of people within social groups, which are influenced by cultural and societal values.