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(Solved): Bert and Betty sold their business, Rugged Tire Ltd., to Art and Erin. Bert and Betty agreed to stay ...



Bert and Betty sold their business, Rugged Tire Ltd., to Art and Erin. Bert and Betty agreed to stay on as employees to help in the transition so that the new owners, Art and Erin, could "learn the ropes." Bert and Betty intended to retire and spend their golden years in Florida. They thought that they would take six months to show the new owners all that was needed to run Rugged Tire Ltd. During the first three months, Bert was very nostalgic for the early days of Rugged. He regretted selling the business to Art and Erin. Bert decided to open a new business instead of going to Florida. The new business was called Old Timer Tire Ltd. Bert was operating Old Timer at the same time as helping Art and Erin run Rugged Tire. Bert's old customers would come to Rugged but immediately go to Old Timer Tire to buy their tires. On the basis of these facts which is the likeliest conclusion? Question 6Answer a. Art and Erin should have asked for a restrictive covenant from Bert. Without the restrictive covenant, they have no remedy against Bert. b. Bert owes no duty to Art and Erin; he was only trying to help the new owners. He cannot control where customers buy their tires c. Art and Erin would have to point to a contractual duty of Bert to act in their best interests. d. If there was proof that Bert used information gained by his employment that was harmful to Art and Erin or Rugged, then Bert may be ordered by the court to compensate the affected parties. e. None of the above is correct.



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