When Mohammed was hired by Pomico,Inc.,he signed the following agreement,"Upon termination of my employment with Pomico,I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement,important to protecting secret information developed in the employer's business,is:
A) an unenforceable exculpatory agreement.
B) an unenforceable usurious agreement.
C) an enforceable bailment agreement.
D) an enforceable agreement not to compete.

Question

Quizplus · Accepted Answer

The agreement that Mohammed signed is an enforceable agreement not to compete. It is a common provision used by employers to protect their trade secrets, confidential information, and key clients. The provision is valid if it is reasonable in scope, duration, and geographic area. In this case, the 30-mile radius and one-year duration are likely reasonable restrictions, so the provision is enforceable.

When Mohammed Was Hired by Pomico,Inc