Noncompete Clauses in Contracts

question 42

Multiple Choice

Noncompete clauses in contracts:

• A)are never enforced because they violate anti-trust laws.
• B)are never enforced because they are unethical.
• C)are always enforced under the doctrine of "freedom of contract."
• D)are enforced if found to be reasonable.

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Definitions:

Related Goods

Products or services that are connected by consumer preferences or demand, such as substitutes and complements.

Price Decreases

Occurs when the cost of a good or service drops, often due to factors like increased supply, reduced demand, or competitive market pressures.

Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Price Increases

Occurs when the cost of goods or services rises over a period of time.