Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract

A) No, it is unenforceable as against public policy. B) Yes, it is likely to be enforceable during employment. C) No, the prohibition against competing is enforceable only after he quits Dunkirk. D) A court would have to rule on the enforceability of the covenant not to compete since courts are reluctant to enforce such covenants during a period of employment.

Question

Amira Martin

Business

10 June, 21:25

Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract

A) No, it is unenforceable as against public policy. B) Yes, it is likely to be enforceable during employment. C) No, the prohibition against competing is enforceable only after he quits Dunkirk. D) A court would have to rule on the enforceability of the covenant not to compete since courts are reluctant to enforce such covenants during a period of employment.

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Answers (1)

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Alisa Rasmussen · Answer 1

The answer is option B) Yes, it is likely to be enforceable during employment

Explanation:

If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract which clearly prohibits him from competing.

This clause in an employment contract is called the Non complete clause.

A non-compete agreement is a contract between an employee and employer that prohibits him from engaging in a business that competes with his/her current employer's business.

During the employment process, if you refuse to sign a non-compete, they choose not to hire you.

Most non-compete agreement is not voided if you resign or are fired. If you violate an enforceable non-compete, you could be sued for any actual losses suffered by your ex-employer.