Suess signed a contract which included a covenant not to compete with his employer for a year if he left the firm. When Suess quit, he went into competition with his former employer and was sued. He argued that the covenant was not valid. The court held:
A) Suess was right, such covenants are void under federal law
B) in all states, such covenants violate public policy
C) such covenant are unconscionable in all states
D) the covenant was not backed up by consideration, so there was no contract to be violated
E) none of the other choices

Question

Quizplus · Accepted Answer

Covenants not to compete are generally enforceable if they are reasonable in scope, geography, and duration. The options provided suggest absolutes that are not accurate across jurisdictions. Courts evaluate these covenants based on specific circumstances and the reasonableness of the restrictions.

Suess Signed a Contract Which Included a Covenant Not to Compete