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Cathy Agrees to Sell Her Daily Donut Shop to Ernie

Question 54

Multiple Choice

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely


A) award Cathy damages.
B) order Ernie to stop doing business.
C) reform the covenant.
D) prohibit both parties from operating donut shops.

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