Genesis Testing Decided That It Needed to Have Noncompete Agreements

question 10

Multiple Choice

Genesis Testing decided that it needed to have noncompete agreements signed by its current employees,something that was not part of their original employment contracts.The noncompete agreements provided that if the employee left Genesis Testing that the employee would not go to work for any of Genesis's competitors for a three-month period.Genesis is involved in an evolving field of blood testing with rapidly changing technology.Genesis offered its employees an extra two weeks of vacation and $1,200 if they would sign the noncompete agreements.All of the employees signed the agreements.Which of the following is true?​

• A)​The covenants not to compete are unenforceable because they lack consideration.
• B)​The covenants not to compete are unenforceable because they are too long in duration.
• C)The covenants not to compete are unenforceable because these types of covenants violate public policy.
• D)The covenants not to compete are enforceable.
• E)a, b, and c

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Definitions:

Equilibrium Quantity

is the quantity of goods or services supplied and demanded at the equilibrium price, where market demand equals market supply.

Price Floor

A price floor is a government-imposed limit on how low a price can be charged for a commodity, typically implemented to protect producers' income.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price.