Asked by Daisy Farhm on May 07, 2024
Verified
Which of the following is most true regarding noncompetition clauses in contracts?
A) Such clauses are not used during employment contracts.
B) Such clauses will be enforced if they have a legitimate business purpose.
C) Such clauses are enforced only for protecting the environment and conserving resources.
D) Such clauses help in promoting free trade.
Noncompetition Clauses
Noncompetition Clauses are provisions in contracts that restrict one party's ability to engage in business activities that compete with another party, usually after the termination of a business relationship or employment.
Legitimate Business Purpose
A justifiable reason or objective underlying a company's activities or decisions, often assessed in legal contexts to determine the validity of business conduct.
- Comprehend the legal enforceability and considerations regarding noncompetition agreements.
Verified Answer
Learning Objectives
- Comprehend the legal enforceability and considerations regarding noncompetition agreements.
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