A Covenant Not to Compete Will Generally Be Enforceable If

question 16

Multiple Choice

A covenant not to compete will generally be enforceable if

• A) no time period or geographical area is specified.
• B) it is considered reasonable.
• C) the agreement extends beyond 10 years after the employee's employment terminates.
• D) the covenant makes it impossible for the employee to obtain gainful employment after his or her employment with the em- ployer terminates.

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Definitions:

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company.

Pump Division

A business segment within a company focused on the production, sales, and service of pump-related products.

Pool Products Division

A specific branch of a company focused on the development, production, and marketing of pool-related products.

Fixed Costs

Fixed costs are expenses that do not fluctuate with changes in production volume or business activity levels.