CompTech Company sells its computer-chip division to Delta Chips Corporation and promises not to reenter the chip market for three years.At common law,this is
A)a restraint of trade and reasonable.
B)a restraint of trade and unreasonable.
C)not a restraint of trade and reasonable.
D)not a restraint of trade and unreasonable.

Question

Quizplus · Accepted Answer

At common law, a non-compete agreement like this is considered a restraint of trade but can be deemed reasonable if it is limited in scope, duration, and geography, and is necessary to protect legitimate business interests.

CompTech Company Sells Its Computer-Chip Division to Delta Chips Corporation