Smith Runs a Software-Design Business

question 130

Multiple Choice

Smith runs a software-design business.He needed someone to handle some product demonstrations,so he hired Janet to do this work.In the employment contract,Smith insisted that Janet promise that,if she left the firm,she would not work for Smith's competitors within a stated period of time and within a stated geographical region.If Janet now wishes to leave the job,indicate the statement that accurately describes the likely effect of her promise.

• A)Such promises are in restraint of trade and thus the courts invariably hold them to be invalid.
• B)If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged,it will enforce it.
• C)Such promises are valid only if given under seal.
• D)Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job.
• E)If the court holds such a promise to be invalid,the whole employment contract is necessarily void as well.

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Definitions:

Childcare

The care and supervision of a child or children, typically provided by someone other than the child's legal guardians.

Net Pay

The amount of money a worker takes home after deductions.

Withholding Tax

Federal, state, and local income taxes that are withheld by employers, who then send the money to the government.

Social Security

A government program that provides financial assistance to retirees, disabled individuals, and survivors of deceased workers.