Question 1
A non-compete agreement is signed by both an employee and employer to restrict employees from engaging in businesses that may pose a threat to the current employer in the form of competition (Garmaise, 378). Most employers do not require employees to sign such contracts but there are those who may fire employees who do not sign the contracts. Generally, courts do not approve such contracts. Various factors are considered whether the contract is reasonable or not.
These agreements are sensible especially to employers even though they are not necessary for the economy, such contracts should not be enforced because they do not encourage competition. With stiff competition in the industry, businesses are able to engage in competition that leads to production of quality services and products. In internet related jobs, such contracts should not be signed to encourage competition among investors and businesses.
Question 2
An enforceable contract is a legal agreement between two individuals, but not enforceable by the court (Garmaise, 377). In this case, the agreement between Z-Trip and Beastie Boys is enforceable because it clearly states the terms. Beastie boys have also agreed to Z-Trip’s request thus granting him permission to make a remix of their song. However, there is no enforceable contract between Monster Energy and Z-Trip because there was no clear agreement between the two. The two did not sign any agreement or state the condition of their operations to make it legally binding. Z-Trip did not sign a non-compete agreement with Beastie boys which would restrict him from using the remix for other gains such as making money. Monster Energy would have won such a case if only it had a signed document that guarantees them the permission to use the remix.
Work Cited
Garmaise, Mark J. “Ties that truly bind: Noncompetition agreements, executive compensation, and firm investment.” The Journal of Law, Economics, and Organization, vol. 27, no.2, 2011, pp. 377-403. DOI: http://doi.org.secure.sci-hub.cc/10.1093/jleo/ewp033
