Gringo's Restaurant is a small restaurant located in a Mesa, Arizona, neighborhood shopping center that has a grocery store (chain) as its anchor tenant. Carl Williams owns Gringo's and has just negotiated its sale to Wilma Freestone. The covenant not to compete provides that Williams will not open a competing restaurant anywhere within a two-mile radius of Gringo's for a period of two years. The noncompete covenant is:
A) too restrictive and is a violation of the Sherman Act.
B) not subject to review so long as it is part of the sales contract.
C) probably reasonable and enforceable.
D) void.
Answers: 3
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