Lyons V Multari Was a Case in Which an Oral Surgeon

question 63

Multiple Choice

Lyons v. Multari was a case in which an oral surgeon and his new associate signed a short, handwritten contract containing a non-competition clause, in which the associate agreed not to compete for three years within a five-mile area. He breached the agreement and was sued. What did the Court determine?

• A) It is only appropriate to enforce a non-competition clause if the agreement is in standard form.
• B) It is not appropriate to enforce a non-competition clause under any circumstances.
• C) It is not appropriate to enforce a non-competition clause if a non-solicitation clause would do.
• D) It is always appropriate to enforce a non-competition clause, as long as the parties have clearly agreed to the provision.
• E) It is only appropriate to enforce a non-competition clause if the parties have had independent legal advice.

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Definitions:

Substitutes

Alternative goods or services that can satisfy the same needs as another, often leading to a choice between the two based on price, convenience, or preference.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect knowledge, where no single firm can influence the market price.

Profit-Maximizing

The method through which a company identifies the pricing and production quantity that maximizes its profits.

Economic Standpoint

A perspective or analysis based on economic principles, often considering factors like scarcity, supply and demand, and cost-benefit analysis.