In DCS Sanitary Management V

question 219

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) overly broad and could not be enforced
• B) violated public policy and that the company must pay damages to the employees
• C) was not enforceable due to lack of consideration
• D) was a reasonable restraint on competition that could be enforced
• E) was a valid restraint on competition since such agreements are legal unless they violate the antitrust laws

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Definitions:

Ethical Problem

A dilemma or situation that requires a decision to be made that involves questioning the morality of the actions or choices.

Business Decision Maker

An individual or group within an organization responsible for making strategic and operational decisions.

Long-run Profit Maximization

A strategy where a firm seeks to achieve the highest possible profit over a prolonged period, considering both current and future potential changes in market conditions.

Unethically

Behaving in a manner that is contrary to accepted moral norms or professional standards.