Johnson and Wilson were the principal shareholders in Matthew Corporation,

Johnson and Wilson were the principal shareholders in Matthew located in the city of Jonesville, Wisconsin. This was engaged in the business of manufacturing paper novelties, which were sold over a wide area in the Midwest. The was also in the business of binding books. Johnson purchased Wilson’s shares of the Matthew and, in consideration thereof, Wilson agreed that for a period of two years he would not

(a) Manufacture or sell in Wisconsin any paper novelties of any kind that would compete with those sold by the Matthew or

(b) Engage in the bookbinding business in the city of Jonesville. Discuss the validity and effect, if any, of this agreement.

 

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