BUS311_chapter_05

Example 5 23 ashley has found a great apartment to

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Unformatted text preview: what Dan believes is her property. When Dan discovers that in fact the location Lena specified is on her neighbor Kai’s property, Dan refuses to perform. Lena cannot sue Dan for breach, because their agreement would have resulted in a trespass on Kai’s real estate. Agreements that violate public policy can be more difficult to determine. For example, an agreement not to compete can be either a lawful contract or void as against public policy. Such clauses, sometimes called restrictive covenants, can serve a valid purpose. If ABC Company hires Sarah and gives her specialized training and supervision for six months, ABC has made an investment in Sarah. If Sarah quits after six months and takes her rog80328_05_c05_089-110.indd 103 10/26/12 5:37 PM CHAPTER 5 Section 5.5 Illegality newfound skills to a competitor of ABC, it seems unfair, and ABC has the right to prevent this by putting noncompetition clauses in their employment contracts. But the key is that these restrictions must be reasonable, because the employee also has a valid interest to protect—that of earning a living! Example 5.22. ABC...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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