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:

James Grunig

A prominent figure in the field of public relations, known for his theories on public relations models, especially the two-way symmetrical model.

One-way Symmetrical

A communication model where messages are sent from an organization to its publics without expecting or incorporating feedback, focusing on persuasion.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, often considered a key component in building and maintaining relationships and credibility.

Drive Change

The effort to cause or facilitate a shift in behavior, process, or culture within an organization or community.