BUS 200 - 226
Professor Margaret Parker
Chapter 10 Additional Questions # 1, 2, 4, 7, and 8

1. Brockwell left his boat at Lake Gaston Sales to be repaired. Brockwell was required to sign a form that states that Lake Gaston Sales has no responsibility for any loss to any property in or on the boat. After the repair, Brockwell is missing electronic equipment and other items of his are damaged. Lake Gaston Sales is using an Exculpatory Clause. In some cases an exculpatory clause is may be unenforceable. Items damaged and stolen from Brockwell’s boat could be a result from Lake Gaston’s Sales’s negligence of taking care of and respecting customer property. This Exculpatory Clause likely will not be enforced because it is seeks to immunize Lake Gaston Sales from any negligence. Similar to the Ransburg V. Richards case.

2. Albert Voorhees was hired as a salesman for Guyan Machinery in West Virginia. Upon hire he was required to sign a contract that would require him, if he left, to not work for a competitor within 250 miles of West Virginia for a period of two years. Noncompete clauses are generally reasonable if they are necessary to protect trade secrets, confidential information and customer bases. Noncompete clauses should also be reasonable in time, geography, and scope of activity. 250 miles and two years before Albert Voorhees can work for a competitor is unreasonable. Another factor is that Polydeck is only a competitor for 1% of Guyan Machinery’s business. Guyan Machinery would not be entitled to enforce its noncompete clause because it is too unreasonable. 4. The McAllisters sold their house to the Silvas for $60,000. Prior to selling the house the McAllisters knew of and were unable to solve several leaks and dampness. They repaired a buckling wall by installing I-beams for support. They did not tell the Silvas anything about the