Asked by Yania Isabel Romero on Jun 11, 2024
Verified
Consent restraints and provisions disqualifying purchasers may be used as long as:
A) they are not manifestly unreasonable.
B) at least one party consented to the provision.
C) the limitation is not unfair under prevailing professional norms.
D) the provision has a legitimate business interest.
Consent Restraints
Legal restrictions or limitations that individuals agree to voluntarily, often within the context of contracts or agreements to restrict certain actions.
Provisions Disqualifying Purchasers
Legal clauses or regulations that prevent certain individuals or entities from buying or acquiring specific assets or securities due to regulatory concerns or conflicts of interest.
Manifestly Unreasonable
A term describing actions or decisions that are so unfair or absurd that they are immediately recognizable as unjust.
- Identify the lawful use of consent restraints and provisions in corporate settings.
Verified Answer
MF
Michael Fernando FloresJun 15, 2024
Final Answer :
A
Explanation :
Consent restraints and provisions disqualifying purchasers may be used if they are not manifestly unreasonable.
Learning Objectives
- Identify the lawful use of consent restraints and provisions in corporate settings.