q22

Which of the following will increase the chances that a covenant (agreement) not to compete clause will be enforced?

a. the restriction involves a geographical area larger than the area in which the employer does business.

b. the restriction is necessary to protect trade secrets.

c. the covenant contains a "lifetime" restriction.

d. none of these, as covenants not to compete are an illegal restriction on an individual's right to work.

q23

Covenants (agreements) not to compete:

a. must have at a minimum reasonable limitations.

b. are always enforced against businesses.

c. are always enforced against individuals and businesses because they serve an important economic function.

d. are never enforced against individuals.

q24

Food, clothing, and shelter are the only things that the courts have been willing to define as being "necessaries."

True or False

q25

While potentially enforceable, contracts that limit competition are disfavored by courts.

True or False

q26

A person who is older than the age of majority may disaffirm a contract if:

a. The other party is a minor who lied about his age

b. The other party is an emancipated minor.

c. The contract is for necessaries

d. None of these.

q27

An exculpatory clause relieving a person from liability for her fraud will not be enforced.

True or False

q28

If a covenant not to compete is too broad, a court will:

a. strike the entire restriction

b. adjust the clause to make it reasonable

c. shut the business down.

d. Choose either to strike the entire restriction, or adjust the clause to make it reasonable.