Question

Shoddy, the owner of Shoe Repair, was contemplating retirement. He therefore contracted to sell his business to Pauline Parker. Shoe Repair was located in Hoosierburg, Indiana, which has a population of 5,233. Apart from containing a provision entitling Parker to use the Shoe Repair name for the business, the parties' contract included a clause that prohibited Shoddy from opening any competing shoe repair shop in Hoosierburg for a period of one year from the date of the parties' contract. Two months after the date of the contract (and one and one-half months after the sale of the business to Parker had been completed), Shoddy grew tired of retirement. As shoe repair had been his life's work, he opened up a shoe repair shop in Hoosierburg. Parker has sued him in an effort to obtain an injunction against his operation of the competing business, alleging a violation of the parties' contract. How is the court likely to rule? Explain your reasoning.

Answer

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