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 twenty-five miles for a period of two years.This type of agreement is called a(n)________.
A)covenant not to compete
B)implied-in-law contract
C)quasi-contract
D)termination agreement
E)public policy agreement

Question

Quizplus · Accepted Answer

When a restraint on trade is reasonable,as determined by the courts,the restraint is typically allowed.Such restraints are known as covenants not to compete,or restrictive covenants.Covenants not to compete tend to come in two varieties - noncompetition in the sale of an ongoing business and noncompetition in employment.

Bob Is Hired to Do Computer Sales for an Electronics