Nyoko signs a covenant not to compete with her employer, Midstate Distribution, Inc. The covenant will be enforced if it

Question

Quizplus · Accepted Answer

A covenant not to compete is a type of contract that restricts an employee from working with a competing employer or starting their own competing business for a specific period, usually within a geographic boundary. Such a covenant may or may not be enforceable, depending upon their reasonableness with respect to time, scope, and place. A covenant that is too harsh and restrains an individual's career growth opportunities may not be upheld by the court. Thus, the covenant not to compete should be reasonable in scope, such as geographic area and duration, to be enforceable. Choice A is not relevant, and choice C is unreasonable as it relieves the employer from their negligence. Therefore, the best option is B.

Nyoko Signs a Covenant Not to Compete with Her Employer