Lisa has been a dentist in Smalltown for several years.She is now ready to retire and she sells her practice to Angie.As part of the sales agreement,Lisa agrees not to practice dentistry within 20 miles of Smalltown for a period of two years.After one year,Lisa is bored so she opens up a dental practice in her home.This practice is very small and Lisa wants to keep it that way.Angie sues on the noncompete agreement.What is the most likely result?
A) This agreement is fully enforceable.
B) This agreement is not enforceable, because agreements in restraint of trade are never enforceable.
C) This agreement is not enforceable, because it is not ancillary to an employment agreement.
D) This agreement is not enforceable, because it is unreasonable as to area.
E) This agreement is not enforceable, because it is unreasonable as to time.

Question

Quizplus · Accepted Answer

The noncompete agreement is likely enforceable because it is reasonable in both geographic scope (20 miles) and duration (two years), which are common standards for such agreements.

Lisa Has Been a Dentist in Smalltown for Several Years