Maurice wishes to purchase a small local restaurant named "Tasty Burger" from Todd,who tells Maurice that although he loves the teenagers who have frequented his establishment,he is tired of flipping burgers and wants to spend more time fishing on the lake.Maurice has Todd sign a covenant not to compete,prohibiting Todd from opening a restaurant within 25 miles of Tasty Burger for 5 years.Assuming that the covenant was drafted properly,is it likely to be enforced? Discuss arguments for and against covenants not to compete in the sale of a business.

The covenant is not likely to be enforced.The agreement may not be for a longer period of time or larger geographic region than is necessary to protect the employer's legitimate business interest.A concern with covenants not to compete is that they restrain trade and may reduce competition.The public policy argument in favor of supporting restrictions regarding the sale of a business involves the fairness of the sale.Public policy requests fairness in business transactions and this fairness does not occur when people profit from a business transaction and then start a new business that destroys the business they just sold.Students may also have other arguments for and against covenants not to compete.