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

Noncompete clauses are designed to prevent individuals from entering into direct competition with a business after leaving or selling it. A 15-year restriction within the entire state is generally considered excessive and unreasonable, as it significantly limits the individual's ability to earn a livelihood in their field of expertise.

Samantha Was in the Final Stages of Selling Her Existing