Question
Ethel, the Director of Research and Development at Standard Hospital Supply, a Virginia company selling only in Virginia, signed a written employment agreement stating that
Ethel, the Director of Research and Development at Standard Hospital Supply, a Virginia company selling only in Virginia, signed a written employment agreement stating that if she left their employment she would not work for anyone in the hospital supply business anywhere in the world for 25 years. The contract also provided that if she did so, she would be liable to Standard Hospital Supply at the rate of $50,000 per day. Ethel nevertheless, on her departure from Standard, begins a new employment with a hospital supply house where she discloses Standard's research secrets and customer lists. Based on the information in the scenario, which of the following is true? a. The covenant not to compete is unreasonable and therefore unenforceable b. The liquidated-damage clause is probably an unenforceable penalty. c. Ethel can be sued for injunctive relief and damages for the disclosure of trade secrets d. All of the above.
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