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6 May, 09:55

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely:

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  1. 6 May, 13:31
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    reform the covenant

    Explanation:

    The given case relates to anti - competitive laws / anti-trust laws. For an active-market economy, antitrust laws guarantee fair competition. Such regulations have developed alongside the economy, protecting carefully towards would-be monopoly power and disturbances to the efficient ebbs and flows of competitiveness. Thus, court can cancel or reform such a covenant if it comes under the preview of anti - trust law.
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