Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it
A) does not require either party to obtain a business license.
B) is reasonable with respect to geographic area and duration.
C) relieves the employer from liability for any injury to Orin.
D) none of the choices.

Question

Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it
A) ​does not require either party to obtain a business license.
B) ​is reasonable with respect to geographic area and duration.
C) ​relieves the employer from liability for any injury to Orin.
D) ​none of the choices.

Quizplus · Accepted Answer

In order for a covenant not to compete to be enforceable, it must be reasonable with respect to geographic area and duration. Choices A and C are unrelated to the enforceability of the covenant, and Choice D is incorrect because one of the choices is the correct answer.

Orin Signs a Covenant Not to Compete with His Employer