In Considering a Covenant Not to Compete in an Employment

question 51

Multiple Choice

In considering a covenant not to compete in an employment contract, the court in the case of Payroll Advance, Inc. v. Yates said in its opinion:

• A) in order to obtain an injunction it is necessary for the employer to show that actual damage has occurred.
• B) covenants not to compete are presumptively valid, and they are enforceable to the extent they are reasonable.
• C) the question of reasonableness of a restraint requires consideration of such circumstances as the subject matter of the contract, the purpose to be served, the situation of the parties, the extent of the restraint, and the specialization of the business.
• D) a non-compete agreement over 2 years in length is never reasonable.

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Definitions:

Equipment-Related Accident

An incident where failure or misuse of medical or any other equipment results in harm or injury.

IV Pumps

Devices used to deliver fluids, including medications and nutrients, directly into a patient's veins at controlled rates.

Malfunctioning

The failure of a system, device, or component to perform its required operational function.

Pathogens Transmission

The process by which infectious agents, such as bacteria, viruses, and fungi, are spread from one person, animal, or object to another.