Questions
STRAT 3410-003 Fall 2025 Exam #2- Requires Respondus LockDown Browser
Single choice
Mr. White is currently under contract with Tuco Salamanca to sell a special type of chemistry glassware in Albuquerque, New Mexico. Mr. White’s employment contract contains a noncompete provision which states that Mr. White, upon termination of employment from either party, cannot sell that special type of chemistry glassware anywhere in the United States. Mr. White decides he hates working for Tuco because he is a terrible boss, so he quits and gets a new job selling the special chemistry glassware for Gustavo Fring. Tuco sues Mr. White for breach of the noncompete provision, which of the following is the most likely outcome:
Options
A.Tuco will lose as the noncompete provision is not reasonably restricted.
B.Tuco will win as noncompete provisions are always legal as long as agreed to by the parties.
C.Tuco will win as the noncompete provision was valid and enforceable against Mr. White.
D.Tuco will lose as noncompete provisions are never valid.
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Step-by-Step Analysis
The scenario involves a noncompete clause in an employment contract and examines its enforceability under typical contract and public policy principles.
Option 1: 'Tuco will lose as the noncompete provision is not reasonably restricted.' Here, the key issue is whether the geographic scope and the scope of activities are reasonable. A blanket nationwide ban on selling a specialized type of glassware is likely far broader than necessary to protect the employer’s legitimate interests (e.g., trade secrets, customer relationships, or ......Login to view full explanationLog in for full answers
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