(Solved) Smith runs a software-design business. He needed someone to handle some product demonstrations, so ...

Smith runs a software-design business. He needed someone to handle some product demonstrations, so he hired Janet to do this work. In the employment contract, Smith insisted that Janet promise that, if she left the firm, she would not work for Smith's competitors within a stated period of time and within a stated geographical region. If Janet now wishes to leave the job, indicate the statement that accurately describes the likely effect of her promise.

▸ If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged, it will enforce it.

▸ Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job.

▸ Such promises are valid only if given under seal.

▸ If the court holds such a promise to be invalid, the whole employment contract is necessarily void as well.

▸ Such promises are in restraint of trade and thus the courts invariably hold them to be invalid.

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Smith runs a software-design business. He needed someone to handle some product demonstrations, so ...

Legal Fundamentals for Canadian Business

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