Asked by Adarsh Prasad on Jul 08, 2024

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Before granting an injunction enjoining a former employee from competing in a described territory, the courts insist that the employer demonstrate that the restriction is __________ to protect the employer's legitimate interest.

A) exculpatory
B) unconscionable
C) necessary
D) usurious

Legitimate Interest

A recognized reasonable ground that an organization may have for processing personal data without needing consent under certain data protection laws.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Restriction

A limitation or constraint placed on actions, activities, or movements, often found in legal contexts or agreements.

  • Recognize the factors courts consider when enforcing non-compete clauses and agreements.
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Verified Answer

SC
Sosso ChannelJul 10, 2024
Final Answer :
C
Explanation :
The correct answer is C) necessary. Courts require that the restriction, such as a non-compete clause, be necessary to protect the employer's legitimate interests, such as trade secrets or confidential information, to grant an injunction. This means the restriction must not be overly broad in terms of duration, geographic scope, and the type of work restricted, and must be justified by a legitimate business interest.