In Considering a Covenant Not to Compete in an Employment

question 31

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.

---

Definitions:

Paroxetine

An antidepressant medication belonging to the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression, anxiety disorders, and PTSD.

Mild Depressive Symptoms

Lesser intense manifestations of depression that can include sadness, fatigue, and irritability, without fully meeting the criteria for major depressive disorder.

St. John's Wort

A herbal plant used in the treatment of mild to moderate depression, anxiety, and sleep disorders.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles.