What alternative terms of a noncompetition agreement do you think would be more reasonable?.
3. You are the owner of a retail business, and you have fallen behind for many months on your loan repayments to the bank (you owe a total of $100,000). The bank has become fed up and now wants you to hand over all of your remaining company funds to pay back the loan. However, the holiday shopping season is coming up in a few months and this is where you typically do 60-70% of your business for the year. Without your company funds you will not be able to pay your rent and pay your staff, so you will not be able to pay back the bank until after the holiday season. If you end up needing to file for bankruptcy, what type do you think would be most appropriate for this situation – Chapter 7, Chapter 11, or Chapter 13?
4. Now suppose that you decide to open up a full-service 24-hour auto repair shop. Your shop is the only one that is open 24 hours a day in your home town. In fact, you are pretty sure it is the only 24-hour auto repair shop in the state. Your business is now a great success, but you had a great deal of trouble finally finding an auto mechanic willing to work the late shift. You are now concerned that this mechanic can leave you at any time and go open help someone else open up a 24-hour shop. You decide to make him sign a noncompetition agreement saying that if he ever leaves your shop he cannot work as an auto mechanic anywhere in your state for the next seven years. He looks at you and says, “Are you out of your mind?” What alternative terms of a noncompetition agreement do you think would be more reasonable?
What alternative terms of a noncompetition agreement do you think would be more reasonable?