Before Granting an Injunction Enjoining a Former Employee from Competing

question 54

Multiple Choice

Before granting an injunction enjoining a former employee from competing in a described territory,the courts insist that the employer demonstrate that the restriction is:

• A) exculpatory.
• B) conscionable.
• C) necessary to protect the employer's legitimate interest.
• D) in compliance with the state's Blue Law.

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Definitions:

Collection Delay

The period between when a company bills its customer and when it actually receives payment, impacting cash flow.

Average Daily Float

The average amount of uncollected funds in a company's checking account, representing checks written against and deposited in the account but not yet cleared.

Collection Float

The time period between when a payment is made by a customer and when the funds become available in the company’s account.