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A Contract Not to Compete Is Valid in Which of the Following

Question 10

Multiple Choice

A contract not to compete is valid in which of the following instances?


A) Two large businesses dividing sales territory for themselves to avoid competition
B) The buyer of a business prohibiting the seller from engaging in the same business in a certain town
C) A business agreeing not to operate in a state to eliminate competition in that state
D) Three businesses agreeing to take turns providing services to a community on a monthly basis in order to avoid competition.

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