Judith is a CPA with an excellent reputation and client base.She sells her tax preparation business to Shawn,and the sales contract includes a noncompete clause restricting Judith from opening a similar business for two years within a 10-mile radius of her former office.If she opens a tax preparation office five miles away after one year,a court would probably:
A) grant an injunction barring her from operating the new office.
B) order confiscation of all of her new client files and turn them over to Shawn.
C) refuse to become involved, as the noncompete clause was illegal.
D) refuse to enforce the noncompete clause, as it is unreasonable regarding time and geographic area.

Question

Quizplus · Accepted Answer

The court would likely grant an injunction because the noncompete clause is reasonable in terms of time (two years) and geographic area (10-mile radius).

Judith Is a CPA with an Excellent Reputation and Client