Bob is hired to do computer sales for an electronics store.He agrees that if he leaves his employment,he will not work for another computer store within 25 miles for a period of two years.That type of agreement is called a[n] ______.
A) Covenant not to compete
B) Employment covenant
C) Working covenant
D) Termination agreement
E) Public policy agreement

Question

Quizplus · Accepted Answer

A type of permissible restraints on trade is covenants not to compete in employment contracts. Covenants not to compete in employment contracts are legal in most states, but they must protect a legitimate business interest.

Bob Is Hired to Do Computer Sales for an Electronics