When Mohammed was hired by Pomico,Inc.,he signed the following agreement,"Upon termination of my employment with Pomico,I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement,important to protecting secret information developed in the employer's business,is an:
A) unenforceable exculpatory agreement.
B) unenforceable usurious agreement.
C) enforceable bailment agreement.
D) enforceable agreement not to compete.

Question

Quizplus · Accepted Answer

The agreement mentioned in the scenario is an enforceable agreement not to compete. It restricts the employee from working for a competitor within a certain geographical area for a specific period to prevent the disclosure of confidential information or trade secrets. Such agreements are legal and enforceable as long as they are reasonable in scope, duration, and geography.

When Mohammed Was Hired by Pomico,Inc