Suess Signed a Contract Which Included a Covenant Not to Compete

question 512

Multiple Choice

Suess signed a contract which included a covenant not to compete with his employer for a year if he left the firm. When Suess quit, he went into competition with his former employer and was sued. He argued that the covenant was not valid. The court held:

• A) Suess was right, such covenants are void under federal law
• B) in all states, such covenants violate public policy
• C) such covenant are unconscionable in all states
• D) the covenant is probably valid in states that allow them
• E) the covenant was not backed up by consideration, so there was no contract to be violated

---

Definitions:

Physical Demands

The requirements for physical effort and stamina that a job entails.

Downsizing

The reduction of an organization's workforce to improve efficiency, performance, or competitiveness, often involving layoffs.

Institutional Programs

Programs developed and implemented by organizations or institutions, often aimed at achieving certain goals or standards.

Enrichment Programs

Activities or courses offered to enhance the knowledge or skills beyond the basic curriculum.