In Considering a Covenant Not to Compete in an Employment

question 30

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) Two of these answers are correct.

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Definitions:

Nominal GDP

The gross domestic product measured at current market prices, without adjusting for inflation, representing the value of goods and services produced.

National Income

The total value of all goods and services produced by a country's economy over a specific time period, including income from foreign investments.

Real GDP

Real GDP (Gross Domestic Product) represents the total value of all goods and services produced over a specific time period within a country, adjusted for inflation.

Price Index

is a measure that examines the weighted average of prices of a basket of consumer goods and services, used to track inflation or deflation.