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:

Three Mile Island

Nuclear power plant near Harrisburg, Pennsylvania, site of 1979 accident that released radioactive steam into the air; public reaction ended the nuclear power industry’s expansion.

Nuclear Plant

A facility that generates electricity by using nuclear reactors to produce steam that drives turbine generators.

Energy Industry

The sector of the economy that encompasses the production, distribution, and sale of energy, including fossil fuels, nuclear power, and renewable energy sources.

Nixon Administration

The executive branch under President Richard Nixon, serving from 1969 to 1974, notable for significant events such as the Watergate scandal.