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.

Recognize the complexity and evolving nature of rights in organizational and societal contexts.

Identify and understand stakeholders and their roles in an organization.

Grasp the principles of ethics in business with specific reference to corporate examples like Johnson & Johnson.

Understand biases and their impact on organizational decision-making and perceptions.

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Definitions:

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total quantity of produced output.

Average Total Cost

The aggregate expense of manufacturing (comprising both fixed and variable expenditures) divided by the overall amount produced.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.

Job Enlargement

Increasing the scope of a job by extending the range of its job duties and responsibilities.