Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 11

After working for the company for several years, Love and Morris, employees of Airco, Inc., were asked to sign employment contracts containing a noncompete clause. Airco stated that employees were asked to sign so as to prevent future competition from former employees who decided to leave the company. Although Airco never formally made any promises, both employees believed that signing the agreement would either make their jobs more secure or give them a better chance for promotion. About a year and a half after signing the agreement, Love and Morris left Airco and went to work for a competitor. Airco then petitioned the court to enforce the noncompete provisions of the two men's employment contracts. Love and Morris contended that they received no consideration for signing the noncompete covenant in their contract. Were they correct? (Milner Airco, Inc. v. Morris, 433 S.E.2d 811)