A Provision That Restricts the Seller from Competing with the Buyer

question 56

Multiple Choice

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

• A) enforceable if it is reasonable between the parties, which means that it must be limited in time (e.g., one year) but need not be limited in area.
• B) enforceable if it is reasonable between the parties and not contrary to public policy.
• C) always unenforceable because any attempt to restrict competition is an illegal restraint of trade.
• D) fatal to the whole contract, i.e., it causes the whole contract to fail.
• E) always enforceable because the parties to a contract have the freedom to contract as they see fit.

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Definitions:

Reducing Sugar

Any sugar that is capable of acting as a reducing agent because it has a free aldehyde group or a free ketone group.

α-D-Fructofuranose

An isomer of fructose where the furanose ring form predominates, characterized by its specific configuration at the anomeric carbon.

Methyl Glycoside

Glycosides formed by the reaction of a sugar with methanol, characterized by a methoxy group replacing the glycosidic hydroxyl group of the sugar.

Mutarotation

The change in optical rotation due to the change in equilibrium between two anomers of a sugar solution over time.