Engage: Video Exercise 14.1: Jack's
Restaurant, Scene 2
Summary: Jack is selling his restaurant to two employees Hal and Sophia. They
disagree over terms of frozen food line and a non-compete agreement. Jack wants to
take those recipes and line of business. - Answer Summary
Assume that a contract was entered into for the sale of the restaurant, and that the sale
included the covenant not to compete. Which of the following is true? - Answer The
covenant not to compete must be reasonable in geographic scope to be valid.
Suppose that Jack and Hal and Sophia enter in to a contract for the sale of the
restaurant. Hal and Sophia inventory the restaurant and they find that there was a case
of bald eagle meat in the refrigerator, which is illegal to possess. This was unknown to
them at the time of the agreement. Which of the following is true? - Answer The contract
would likely sever the illegal part of the contract and allow for the contract for the sale of
the business to be enforced.
Restaurant, Scene 2
Summary: Jack is selling his restaurant to two employees Hal and Sophia. They
disagree over terms of frozen food line and a non-compete agreement. Jack wants to
take those recipes and line of business. - Answer Summary
Assume that a contract was entered into for the sale of the restaurant, and that the sale
included the covenant not to compete. Which of the following is true? - Answer The
covenant not to compete must be reasonable in geographic scope to be valid.
Suppose that Jack and Hal and Sophia enter in to a contract for the sale of the
restaurant. Hal and Sophia inventory the restaurant and they find that there was a case
of bald eagle meat in the refrigerator, which is illegal to possess. This was unknown to
them at the time of the agreement. Which of the following is true? - Answer The contract
would likely sever the illegal part of the contract and allow for the contract for the sale of
the business to be enforced.
