Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 03 Feb 2018 My Price 5.00

travel agency business


Blue purchased a travel agency business from Drye. The purchase price included payment for Drye’s goodwill. The agreement contained a covenant prohibiting Drye from competing with Blue in the travel agency business. Which of the following statements regarding the covenant is not correct?

 

a. The restraint must be no more extensive than is reasonably necessary to protect the goodwill purchased by Blue.

b. The geographic area to which it applies must be reasonable.

c. The time period for which it is to be effective must be reasonable.

d. The value to be assigned to it is the excess of the price paid over the seller’s cost of all tangible assets. (11/87, Law, #2)

Answers

Maurice Tutor
(5)
Status NEW Posted 03 Feb 2018 11:02 PM My Price 5.00

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