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1. Mel Merchant has a neighborhood grocery store that he would like to sell Bill buyer is interested in purchasing the store, but he is concerned because he knows that Mel has built up a lot of good will over the years, and he wonders whether Mel might just open up a new store down the block and take all the business from the old store with him. At the time of the sale Bill asks for and receives from Mel a clause in the agreement that Mel will not open another grocery store within a 150 mile radius of the old store for a period of ten years.
(a) What is this agreement called?
(b) Is the negotiated agreement a valid one?
(c) What guidelines would a court follow in assessing its enforceability?
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