Ralph Davis owned a frozen yogurt shop that was quite successful because it was the only shop within a three-mile radius of three high schools. The high school students and their families were his customer base. Ralph sold the yogurt shop to Denise Cole. Their agreement provided that Ralph would not start another yogurt shop within a five-mile radius of Denise's shop. What would happen if a court found that the five-mile radius was too geographically broad?

Question

Ralph Davis owned a frozen yogurt shop that was quite successful because it was the only shop within a three-mile radius of three high schools.  The high school students and their families were his customer base.  Ralph sold the yogurt shop to Denise Cole.  Their agreement provided that Ralph would not start another yogurt shop within a five-mile radius of Denise's shop.​ ​What would happen if a court found that the five-mile radius was too geographically broad?

Quizplus · Accepted Answer

The court can modify and enforce the covenant not to compete to a reasonable geographic area if it finds the original scope too broad.

Ralph Davis Owned a Frozen Yogurt Shop That Was Quite