Question

When a nationally known neurosurgeon in Chicago, Illinois, sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year. What may be specified in the contract?

1) The seller will not practice within a 200-mile radius of Chicago for one year.
2) The seller will not practice within a 50-mile radius of Chicago for one year.
3) The seller will not practice within a 500-mile radius of Chicago for one year.
4) The seller will not practice within a 1000-mile radius of Chicago for one year.

Answer 1

The non-compete clause in the neurosurgeon's contract specifies that the seller will not practice within a 100-mile radius of Chicago for one year.

Step-by-step explanation:

When a nationally known neurosurgeon in Chicago, Illinois, sells her practice, the contract may specify a non-compete clause. The question presents a scenario where the contract specifies that the seller (neurosurgeon) will not practice within a certain radius of Chicago for a specified time period. The correct statement according to the scenario provided would be:

The seller will not practice within a 100-mile radius of Chicago for one year.

This type of clause is included to prevent the seller from competing with the new owner of the practice within the agreed-upon area and time frame. It is crafted to protect the practice's existing patient base and the investment of the buyer.