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.