An agreement not to compete is enforceable:
A) in the sale of a business.
B) between competitors.
C) in contracts for the sale of goods.
D) in contracts for the sale of securities.

Question

Quizplus · Accepted Answer

An agreement not to compete is enforceable in the sale of a business. This is because such an agreement is generally considered necessary to protect the interests of the buyer, who is purchasing the business with the expectation of being able to run it successfully without competition from the seller or other parties. However, agreements not to compete between competitors may be considered anti-competitive and may not be enforceable under antitrust laws. Agreements not to compete are also generally not relevant to contracts for the sale of goods or securities.

An Agreement Not to Compete Is Enforceable