Question

The seller of a dry cleaning business has agreed not to open another dry cleaning business for two years within a one-mile radius of the sold business. Such an agreement: a. is void as against public policy. b. is void as usurious. c. is valid and enforceable. d. is void as unconscionable.

Answer 1

Answer:

c. is valid and enforceable

Explanation:

In business,  this is called a Non-Compete Clause.

Non-Compete Clause can prevent a certain individual or organization to compete with another business , as long as both parties con sensually sign the agreement.

Typically, Non-Compete clause is required after all the parties involved have some sort of affiliation toward one another/

for example:

1. One party just bought the business from another party.

2. One party is an ex-members/ex-employees of another party. Making them know internal secrets of that other party.