In DCS Sanitary Management V

question 1

Multiple Choice

In DCS Sanitary Management v. Castillo, where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS, the appeals court held that the agreement:

• A) effectively put the former employees out of the cleaning business within an extensive region and so were too broad to be enforced
• B) effectively put the former employees out of the cleaning business within an extensive region and so could be enforced
• C) ineffectively put the former employees out of the cleaning business within an extensive region and so were too broad to be enforced
• D) did not put the former employees out of the cleaning business within an extensive region and so could be enforced
• E) none of the other choices are correct

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company’s balance sheet.

Asset Account

An account on a balance sheet that represents a resource owned or controlled by a company, expected to produce future economic benefits.

Acquisition Cost

The total expense incurred to obtain an asset, including the purchase price and all related costs to ready the asset for its intended use.

Installation Costs

Expenses incurred during the setup of equipment, machinery, or systems.