In Order to Be Enforceable,a Covenant Not to Compete Must

question 25

Multiple Choice

In order to be enforceable,a covenant not to compete must be reasonable in each of the following aspects EXCEPT:

• A) length of time the restriction is in effect
• B) scope (i.e.,activities affected) of the restriction
• C) amount paid to the one who gives up the right to compete
• D) geographic area of the restriction

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Definitions:

Industry

A group of companies or organizations involved in the production or supply of goods and services in a particular area of the economy.

Firms

Business entities engaged in commercial, industrial, or professional activities, with the goal of earning a profit.

College Textbook Publishers

Companies specialized in publishing textbooks tailored for college and university level courses.

Cutthroat Competition

A situation in which businesses aggressively compete with one another by cutting prices and attempting to eliminate competitors in the market.