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 is probably valid in states that allow them
E) the covenant was not backed up by consideration, so there was no contract to be violated

Question

Quizplus · Accepted Answer

The most likely outcome is that the covenant is valid in states that allow them. The enforceability of non-compete agreements varies by state, but many states permit them if certain requirements are met, such as being reasonable in scope and duration and protecting a legitimate business interest. The other options are either not accurate (A and B) or do not fully address the issue (C and E).

Suess Signed a Contract Which Included a Covenant Not to Compete