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:

Trade Secret

Information, including a formula, practice, process, design, instrument, pattern, or compilation of information, that is not generally known and that a business can keep confidential to gain an economic advantage over competitors or customers.

Transferee

A person or entity that receives a transfer of property, rights, or interest from another.

Noncompetition Clause

A contractual term preventing one party from competing directly with another party for a certain period and within a specified geography.

Software Agreement

A legal contract specifying the terms of use, distribution, and ownership of software between the provider and the user.