Glencoe Accounting

Chapter 16: Special Journals: Sales and Cash Receipts

Extend: Matter of Ethics

Working for a Competitor

• Many U.S. companies require key employees to sign non-compete agreements to protect trade secrets and prevent former employees from working for their competitors. Some non-compete agreements prevent former employees from continuing to work in the same industry when they leave their position.
• Using your favorite search engine, research non-compete agreements.
• Write a report describing the purpose and legality of non-compete agreements. Explain how they are used and enforced. Describe the penalties of a breached non-compete agreement.
• How do you feel about the restrictions of a non-compete agreement? Would you sign a non-compete agreement as a condition of employment? Why or why not?