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) 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.
C) Such promises are valid only if given under seal.
D) If the court holds such a promise to be invalid, then the whole employment contract is necessarily void as well.
E) 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.

Question

Gareth Thompson · Accepted Answer

Final Answer : E, Explanation :  Courts evaluate the reasonableness of non-compete clauses (like the promise Janet made) based on factors such as duration, geographical scope, and impact on public interest. If deemed reasonable, these promises can be enforced.

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