Barb has been a children's day care provider for several years in the small town of Sallton.She has decided to give it all up and move to the big city for excitement and adventure.She sells her business to Ken,agreeing not to open a competing business within five miles of Sallton for a period of nine months.After five months of the big city life,Barb is broke and moves back to Sallton.She opens a small day care business.Ken sues on the non-compete clause.What is the most likely result?
A)Ken wins.The agreement is enforceable.
B)Barb wins.The agreement is denying her the right to do the only thing she knows how to do.
C)Barb wins.The agreement is not enforceable because it is not ancillary to a legitimate bargain.
D)Barb wins.The agreement is not reasonable as to time.

Question

Quizplus · Accepted Answer

Ken is likely to win because the non-compete clause was agreed upon by both parties, and Barb violated it by opening a competing business within the restricted area before the nine-month period elapsed. The clause is enforceable as it is ancillary to a legitimate bargain, which is the sale of her business. The time restriction of nine months is also a reasonable period.

Barb Has Been a Children's Day Care Provider for Several