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Judith Is a CPA with an Excellent Reputation and Client

Question 16

Multiple Choice

Judith is a CPA with an excellent reputation and client base.She sells her tax preparation business to Shawn,and the sales contract includes a non-compete clause restricting Judith from opening a similar business for one year within a 10-mile radius of her former office.If she opens a tax preparation office five miles away after one year,a court would probably


A) grant an injunction barring her from operating the new office.
B) order confiscation of all of her new client files and turn them over to Shawn.
C) refuse to become involved,as the non-compete clause was illegal.
D) refuse to enforce the non-compete clause,as it is unreasonable regarding time and geographic area.

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