Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 3

The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the HI Company, agreeing ''not again to go into the manufacture of harvesting machines anywhere in the United States.'' The Dear Corporation, which had a national and international goodwill in its business, now begins the manufacture of such machines contrary to its agreement. Should the court stop it fromdoing so? Explain.