Genesis Testing decided that it needed to have noncompete agreements signed by its current employees,something that was not part of their original employment contracts.The noncompete agreements provided that if the employee left Genesis Testing that the employee would not go to work for any of Genesis's competitors for a three-month period.Genesis is involved in an evolving field of blood testing with rapidly changing technology.Genesis offered its employees an extra two weeks of vacation and $1,200 if they would sign the noncompete agreements.All of the employees signed the agreements.Which of the following is true?

Question

Genesis Testing decided that it needed to have noncompete agreements signed by its current employees,something that was not part of their original employment contracts.The noncompete agreements provided that if the employee left Genesis Testing that the employee would not go to work for any of Genesis's competitors for a three-month period.Genesis is involved in an evolving field of blood testing with rapidly changing technology.Genesis offered its employees an extra two weeks of vacation and $1,200 if they would sign the noncompete agreements.All of the employees signed the agreements.Which of the following is true?​

Quizplus · Accepted Answer

The fact that Genesis provided its employees with an extra two weeks of vacation and $1,200 constitutes consideration for the employees' agreement to the noncompete agreements. Additionally, a three-month period is generally considered to be a reasonable duration for noncompete agreements. Lastly, while noncompete agreements may sometimes be deemed unenforceable if they violate public policy, in this case, there is no indication that these agreements do so. Therefore, the covenants not to compete are enforceable.

Genesis Testing Decided That It Needed to Have Noncompete Agreements