Smith Ran a Software-Design Business

question 1

Multiple Choice

Smith ran a software-design business. He needed someone to handle some of the product demonstrations, so he hired Janet to do this work. In the employment contract, he 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 holds such a promise to be invalid, then the whole employment contract is necessarily void as well.
• C) Such promises are valid only if given under seal.
• D) If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged, then it will enforce it.
• E) 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.

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Definitions:

World War I

World War I, also known as the First World War or the Great War, was a global conflict that took place from 1914 to 1918, principally fought between the Allies and the Central Powers, marked by trench warfare and the extensive use of new military technologies.

Prohibition

The legal prevention of the manufacture, sale, and transportation of alcoholic beverages in the United States from 1920 to 1933 under the 18th Amendment.

Corruption

The abuse of entrusted power for private gain, often undermining democracy and good governance.

Speakeasies

Illicit establishments that sold alcoholic beverages during the Prohibition era in the United States.