Which of the Following Would Be Unenforceable Because the Subject

question 40

Multiple Choice

Which of the following would be unenforceable because the subject matter is illegal?

• A) An employer promises not to press criminal charges for stealing money from the company safe, if the employee agrees to pay back the money
• B) A fee paid to an attorney to defend a person in criminal court against an assault charge
• C) A restrictive clause in an employment contract prohibiting a former employee from using the employer's trade secrets
• D) An arbitration clause appearing in a warranty agreement given to the purchaser of an iPod in a large retail establishment

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Definitions:

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Rent Revenue

Income earned from leasing out properties or spaces to tenants.

Periodic Inventory System

An inventory system that updates inventory balances after a specific period, typically using physical counts.

Accounts Payable

Liabilities of a business that are debts owed to creditors for purchases made on credit.