QUESTION 1 – 8 POINTS Samson owned a kitchen supply store i…
QUESTION 1 – 8 POINTS Samson owned a kitchen supply store in Madison, Wisconsin under the name “Samson Kitchen Supply”. Samson wanted to sell her business, and negotiated an agreement for the sale of her business to Joel. During the negotiations over the sale of the assets, Joel expressed his concern that after closing on the sale of the business that Samson would start up a competing kitchen supply store and steal Joel’s customers (because of their loyalty to Samson). Therefore, the sale contract that Samson and Joel both signed and agreed to included the following provision: “Samson agrees that she shall not operate or have any ownership interest in a store that sells kitchen supplies, restaurant supplies, food, kitchen equipment, or kitchen related accessories for a period of 8 years from the date of this agreement within a 50 mile radius of the current location of Samson Kitchen Supply’s store in Madison, Wisconsin, nor will she solicit any of Samson Kitchen Supply’s current customers.” In order to determine the price that she should sell her store for, Samson obtained a market survey that she could present to any prospective buyer. The market survey determined that 80% of Samson’s Kitchen Supply’s clients came from within a 40 mile radius of the store. Joel and Samson agreed on a purchase price for the store of $800,000, which was determined as follows: $400,000 in inventory; $200,000 in equipment, and $200,000 in goodwill and intangibles. Joel and Samson closed (consummated and concluded) the sale of the kitchen supply store on March 30, 2022. On March 1, 2023, Joel learned that Samson was in the process of opening up a new kitchen supply store just 20 miles from the location of Samson’s Kitchen Supply. Joel is obviously very upset about this and believes that Samson’s conduct is a violation of the sale agreement. Joel has filed a lawsuit to try and stop Samson from operating her new store in violation of the sale agreement. REQUIRED (8 Points): The court in the action commenced by Joel has determined that Samson’s conduct is a violation of the sale agreement and has ordered her to stop operating her new store. In separately lettered or numbered paragraphs discuss the reasons why the court enforced Samson’s promise not to open a competing kitchen supply store.