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Which of the Following Examples of a Covenant in Restraint

Question 20

Multiple Choice

Which of the following examples of a covenant in restraint of trade is most likely to be against public policy?


A) The sellers of a dot.com sign an agreement that they will not compete directly with their former company for a period of two years.
B) A high- tech firm has its engineers sign a contract promising not to reveal any information about patents to any other high- tech, communications, or pharmaceutical companies during their employment tenure.
C) Partners in an advertising agency sign an agreement that they will engage in advertising sales exclusively for the agency for the duration of their employment.
D) An entrepreneur sells his successful home baking business to a supermarket chain. He signs an agreement that bars him from setting up a bakery business in the future.
E) all of the above

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