Asked by Dounia Touil on Sep 30, 2024
In the case in the text,Clark's Sale and Service,Inc.v.Smith,why did the court refuse to enforce the restrictive covenant?
A) The restrictive covenant was overly broad and indivisible.
B) The restrictive covenant did not serve a legitimate business purpose.
C) The restrictive covenant was unreasonable in time.
D) The restrictive covenant imposed an undue hardship on Smith.
Restrictive Covenant
An agreement restricting the use of real property.
Legitimate Business Purpose
A valid, lawful reason conducted by a business that justifies certain actions or policies.
Undue Hardship
A significant difficulty or expense imposed on an employer by accommodating an employee under laws like the ADA.
- Understand the criteria for determining the enforceability of restrictive covenants and noncompetition clauses in different contexts.
Learning Objectives
- Understand the criteria for determining the enforceability of restrictive covenants and noncompetition clauses in different contexts.