Suess Signed a Contract Which Included a Covenant Not to Compete

question 351

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 was not backed up by consideration, so there was no contract to be violated
• E) none of the other choices

Grasp the concept and implications of black markets in response to price controls.

Recognize the ethical considerations and economic implications of a market for human organs.

Interpret the role of government interventions, such as taxes and subsidies, on supply and market equilibriums.

Distinguish between allocative and productive efficiency in market contexts.

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Definitions:

Strategy Development

The process of planning and organizing a series of actions or tactics to achieve a long-term goal or overall objective.

Negative Announcements

Communications that convey unfavorable news, decisions, or changes, often requiring careful wording to minimize negative reactions.

Goodwill

An intangible asset that represents the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.

Buffer

A means of cushioning, isolating, or protecting; often used in the context of absorbing shocks or smoothing out fluctuations.