Business Law Question

[Gaston]

Advertisement Expert: Janet Ilacqua - 5/4/2005 Hi Janet, how are you? I was surfing the net looking for help with my business law homework and I came across your page. I have 2 problems that I need to finish for my business law course that can be used as extra credit towards my final grade so I was wondering if you could help.
1:

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Dr. Smith sells his dental practice in Fresno, California to Dr. Jones. One of the agreements Dr. Smith signs is one which prohibits him from practicing dentistry in California for the rest of his life since that would be competing with Dr. Jones. Three Years later, Dr. Smith decides he needs more income, so he opens a dental practice in Chico, California. Dr. Jones sues Dr. Smith, asking the Court to issue an injunction prohibiting Dr. Smith from practicing Detistry.

What factors will the Court consider? What type of court will hear the case?

2:

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Alpha Investments, Inc., offers to buy Beta Computer Corporation. On May 1, Beta gives Alpha copies of Beta's financial statements for the previous year. The statements show an inventory of $1 million. On May 15, Beta discovers that the previous year's inventory is overstated by $500,000, but does not inform Alpha of its discovery. On June 1, Alpha, relying on the financial statements, buys Beta. On June 10, Alpha discovers the inventory overstatement. Can Alpha succeed in a suit against Beta for fraud? What are the elements it will need to prove it. What remedies does Alpha have?

[josephus]

1.  Superior Court  The court will probably decide that he is not in  competition with Dr Smith because Chico is over 200 miles away from Fresno. Also, they will consider the amount of time that he has been out of the business

2. Beta did not disclose an important piece of information that would have influenced Alpha's decision.  The party would need to prove that the act of ommission was intentional and that Alpha would not have entered into the contract otherwise.  However, Alpha can still collect if the lack of disclosure was not intentional, but due to negligence