[Beauty Shop Woes] When Giuseppe hired Ines to work in his beauty shop as a hair stylist, she entered into an agreement with Giuseppe whereby if she left his employment she would not work for another beauty shop within 50 miles for 2 years. Giuseppe trained Ines in a number of new techniques. After nine months, Ines was offered a great job down the street at a new beauty shop. She quit Giuseppe's shop and a number of customers followed her down the street to her new job. Giuseppe claimed that she had signed a contract and had no right to go to work at the new shop. Ines disagreed and told Giuseppe that no judge in the country would enforce such an agreement. Ines then told Giuseppe that she was more worried about a customer who was threatening to sue her because her hair turned green after Ines worked on it. Ines said that she knew that the customer's hair was damaged; but that she told the customer that odd results could result from a dye attempt and had the customer sign a contract that released Ines from all liability and that she would not sue. The customer, however, sued anyway.
-Is Ines correct in claiming that no judge in the country would enforce such an agreement?
A) She is correct because such agreements are considered in restraint of trade in every state.
B) She is incorrect because such agreements are criminally illegal in every state.
C) She is incorrect because while no court would approve a geographical restriction, some courts recognize time restrictions as being valid.
D) She is incorrect because all courts approve such agreements so long as it can be shown the employee gained a benefit other than pay from the employment.
E) She is incorrect because courts across the country vary in regards to the enforceability of such agreements.
Correct Answer:
Verified
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