Asked by Hazal Metin on Sep 30, 2024
Helga owns an insurance business in Idaho.Her clients are all Idaho residents.She later sells her business to Carlos.As part of the deal,the contract contains a noncompete clause that prevents Helga from operating an insurance business anywhere in Idaho,Washington,or Oregon for a period of five years.Six months after this sale,Helga opens an insurance business in Oregon.If Carlos seeks to enforce the noncompete agreement against Helga,will he probably be successful?
A) Yes,because this agreement is reasonable.
B) Yes,because the clause is not imposing an undue hardship.
C) No,because this agreement is not reasonable.
D) No,because the agreement is not yet converted into a treaty.
Noncompete Clause
A contract provision that prohibits an employee from working for or becoming a competitor for a certain period after leaving a company.
Undue Hardship
A principle that exempts an employer from providing accommodations that would result in significant difficulty or expense under the Americans with Disabilities Act.
- Become familiar with the legal framework and enforceability of noncompetition clauses.
Learning Objectives
- Become familiar with the legal framework and enforceability of noncompetition clauses.
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