Samantha was in the final stages of selling her existing business,but she backed out of the deal at the last minute because the buyer asked her to sign a contract stating that she would not enter into a similar business within the state for at least 15 years.This is an example of
A) A reasonable intellectual property contract
B) An unreasonable intellectual property contract
C) A reasonable noncompete clause
D) An unreasonable noncompete clause

Question

Quizplus · Accepted Answer

A noncompete clause that restricts someone from entering a similar business for 15 years within a state is generally considered unreasonable due to its excessive duration and geographic scope.

Samantha Was in the Final Stages of Selling Her Existing