Laura was employed by Style Unlimited a noted fashion house in Toronto as a fashion
stylist.
Her contract of employment with the company provided that upon leaving the employment, she is prohibited from opening up a rival business for the next ten years in any part of Canada. Laura has recently moved to Vancouver and plans to open up her own fashion company. Which of the following is correct?
A) The restraint will only be enforced if Style Unlimited can prove that Laura received independent legal advice prior to agreeing to it.
B) The restraint will be strictly enforceable against Laura unless she can prove that it is not in her best interests.
C) A court will likely find the restraint unreasonable
D) Laura can be restrained from opening up her own business
E) The restraint will not be enforceable against Laura unless Style Unlimited can show that it is in its best interests.
C
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A corporation is evaluating the relevant cash flows for a capital budgeting decision and must estimate the terminal cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of $15,000
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