Question

Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. Which of the following is true regarding Janice's claim that no judge in the country would enforce such an agreement?

A. She is correct because such agreements are considered in restraint of trade in every state.

B. She is incorrect because such agreements are criminally illegal in every state.

C. She is incorrect because while no court would approve a geographical restriction, some courts recognize time restrictions as being valid.

D. She is incorrect because all courts approve such agreements so long as it can be shown the employee gained a benefit other than pay from the employment.

E. She is incorrect because courts across the country vary in regards to the enforceability of such agreements.

Answer

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