Which of the Following Types of Restraint of Trade Clauses

question 1

Multiple Choice

Which of the following types of restraint of trade clauses are likely to be ruled invalid?

• A)'If you leave our employment you agree you will not set up a rival business within 15 kilometres of our business address.This restriction applies for five years from when you leave.' The employer runs a hairdresser business and the employee is a newly qualified hairdresser.
• B)'If you leave our employment you agree you will not work for a rival business in any capacity relating to the business of producing or selling cars within Australia or New Zealand.This restriction applies for three years from when you leave.' The employer is a car manufacturer and the employee is their national sales manager.
• C)'The seller of a business will not do anything related to that business anywhere in the world for 20 years.' The buyer is purchasing an IT business that has a worldwide monopoly.
• D)All of the above
• E)A and B only.

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Definitions:

Lifetime

The duration or extent of time that an individual exists or a specific entity or event occurs.

Increased

Describes a process or trend where there is an augmentation or rise in the level, number, or amount of something.

Lifetime

The duration or period from an individual's birth to their death, or the existence span of an object or concept.

Increased

Describes a situation or quantity that has grown or become larger or greater in size, amount, intensity, or degree.