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In Servro Industries,Inc

Question 73

Multiple Choice

In Servro Industries,Inc.v.Pizzillo,Pizzillo was a franchisee who signed an agreement with the franchisor Servpro,not to work for a competing company within 25 miles of his territory for a period of two years after the franchise terminates.Within the two year period after the termination of the franchise Pizzillo's wife opened a similar company which Pizzillo started to work for.Servpro sued to stop him from competing and the court said:


A) the noncompetition clause could be enforced because Pizzillo was soliciting customers and acting to harm Servpro breaching fiduciary duties imposed by the contract even after termination.
B) twenty five miles was an unreasonable distance that deprived Pizzillo's right to work and could not be enforced.
C) since the company was owned by his wife, Pizzillo was not competing with Servpro.
D) fiduciary and contractual duties cannot survive the termination of a franchise agreement and become unenforceable upon termination of the contract

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