Suess Signed a Contract Which Included a Covenant Not to Compete

question 129

Multiple Choice

Suess signed a contract which included a covenant not to compete with his old employer for a year.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,all such covenants are void
• 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

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Definitions:

Average Payoff

The expected return or outcome from a particular strategy, investment, or action, calculated as the sum of all possible payoffs weighted by their probabilities.

Decision Tree

A graphical representation of decision-making processes, showing different choices and their potential outcomes, including chance event outcomes, resource costs, and utility.

Revenue Management

A strategic approach to selling a limited inventory of goods or services to maximize revenue, often used in airlines, hotels, and other sectors.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of occurrence.