Clothing For Accountants is a popular retail store owned by I.M.Material.Material has just sold the business to Phil Forma.Phil has asked that a covenant not to compete be inserted into the agreement.Such covenants are:
A)void as against public policy.
B)only valid in employment contracts.
C)valid if reasonable in time and geographic scope.
D)none of the above

Question

Quizplus · Accepted Answer

Covenants not to compete are generally enforceable if they are reasonable in time and geographic scope, meaning they do not excessively restrict the employee's ability to work and do not extend too far beyond the employer's legitimate business interests. In this case, the covenant not to compete would be included in the agreement for the sale of the business and would likely be considered valid if it meets these requirements.

Clothing for Accountants Is a Popular Retail Store Owned by I.M.Material.Material