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Cerrena [4.2K]
3 years ago
10

Larry writes scripts for TV shows. The show he currently works for, Curb, required him to sign a contract prohibiting him from w

riting scripts for any other TV shows while working for Curb. Larry has run in to some trouble recently, after making it appear that he was responsible for a fire that burnt down the home of his friend, Jerry. Larry swears it was not his fault, but Jerry demands that Larry write the script of a competing TV show to compensate Jerry for the loss of the house. If Larry writes for this show while working for Curb, will a court likely enforce the non-compete agreement against Larry?
a. Yes, it is likely to be enforceable during Larryâs employment with Curb.
b. A court would bar this prohibition because it is exculpatory.
c. This prohibition against competing is enforceable only after Larry quits Curb.
d. No, the restriction is unenforceable as a restraint on trade and is against public policy.
Business
1 answer:
maria [59]3 years ago
7 0

Answer:

a. Yes, it is likely to be enforceable during Larry's employability with Curb.

Explanation:

Larry has signed a contract with Curb that he will not be writing script for any other show while he is working with him. If Larry writes the script for Jerry he will be held responsible for breach of contract terms, and the agreement is likely to be enforceable by court against Larry.

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Answer:

Income statement

Sales Revenue                                                                     $  612,000

Variable Overhead cost                                                      $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

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Net Income                                                                              $    51,000

Explanation:

Income statement

Sales Revenue ( 9,000 units * $ 68)                                    $  612,000

Variable Overhead cost ( 9,000 * $ 35 )                             $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

Variable Operating expenses ( $ 3 * 9000 units)               $ (    27,000)

Fixed Operating expenses                                                    <u>$(    93,000)</u>

Net Income                                                                              $    51,000

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