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Anderson's Business Law and the Legal Environment 22th Edition by David Twomey,Marianne Jennings
Edition 22ISBN: 978-1133587583Anderson's Business Law and the Legal Environment 22th Edition by David Twomey,Marianne Jennings
Edition 22ISBN: 978-1133587583 Exercise 2
Blue purchased a travel agency business from Drye. The purchase price included payment for Drye's goodwill. The agreement contained a covenant prohibiting Drye from competing with Blue in the travel agency business. Which of the following statements regarding the covenant is not correct a. The restraint must be no more extensive than is reasonably necessary to protect the goodwill purchased by Blue.
b. The geographic area to which it applies must be reasonable.
c. The time period for which it is to be effective must be reasonable.
d. The value to be assigned to it is the excess of the price paid over the seller's cost of all tangible assets. (11/87, Law, #2)
b. The geographic area to which it applies must be reasonable.
c. The time period for which it is to be effective must be reasonable.
d. The value to be assigned to it is the excess of the price paid over the seller's cost of all tangible assets. (11/87, Law, #2)
Explanation
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b) True. See a
c) True. See a
d) False. ...
Anderson's Business Law and the Legal Environment 22th Edition by David Twomey,Marianne Jennings
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