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How Do Courts Regard Restrictive Covenants

Question 39

Multiple Choice

How do courts regard restrictive covenants?

A) Courts will find all restrictive covenants to be against public policy.
B) Courts will presume restrictive covenants to be against public policy unless the party seeking to enforce the covenant demonstrates that the restriction is reasonable.
C) Courts will presume restrictive covenants to be reasonable unless the party seeking to avoid the covenant demonstrates that the restriction is against public policy.
D) Courts will assume that unless there was unfairness during the bargaining process, restrictive covenants should be upheld because the parties have freedom to contract.
E) none of the above

Correct Answer: