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 noncompete 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

grant an injunction barring her from operating the new office.

Explanation:

A noncompete clause shortened as NCC or sometimes referred to as, a covenant not to compete (CNC), it is a term in a contract law, that defines a situation or a clause under in which an individual or one party agrees not to enter into competition with the other party, during or after contractual relationship.

Often occurs between employer amd employee, the purpose of the clause is to prevent employees from entering into the similar markets or professions considered to be in direct competition with the employer.

Hence, in this case, since the sales contract carried out by Judith to Shawn has noncompete clause (NCC) restricting Judith from opening a similar business for two years within a 10-mile radius of her former office.

Therefore, should Judith opens a tax preparation office five miles away after one year, a court would probably grant an injunction barring her from operating the new office

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