Asked by Andres Soler on Apr 29, 2024
Verified
Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract?
A) No, it is unenforceable as against public policy.
B) Yes, it is likely to be enforceable during employment.
C) No, the prohibition against competing is enforceable only after he quits Dunkirk.
D) A court would have to rule on the enforceability of the covenant not to compete since courts are reluctant to enforce such covenants during a period of employment.
Employment Contract
A legally binding agreement between an employer and an employee that outlines the terms and conditions of employment.
Competing
The action of participating in a market with others striving for the same objective, often business or market share.
Enforceable
A term applied to contracts or agreements that are legally binding and can be upheld in court.
- Determine the situations in which legal systems uphold certain restrictive covenants, including non-compete agreements.
Verified Answer
LS
Lancelot SordanMay 06, 2024
Final Answer :
B
Explanation :
Don's employment contract likely includes a valid and enforceable covenant not to compete while employed with Dunkirk Ice Cream. This type of provision is common in many employment contracts, particularly for sales positions where an employee has access to confidential information and customer relationships. Whether or not a court would enforce the covenant not to compete would depend on the specific language of the contract and the circumstances surrounding Don's potential violation of the provision.
Learning Objectives
- Determine the situations in which legal systems uphold certain restrictive covenants, including non-compete agreements.
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