Person R was hired by company I as sales manager and after few years, promoted when the company I bought a new product line based on signing restrictive covenants subjected to conditions such as person R cannot be employed in direct competitors of company I for the period of two years from termination and within three hundred miles of company I. Person R signed the agreement and promoted to vice president of sales. But, he could not perform well and got terminated. Later, person R joined the competitor of company I. To discuss: If the company I can enforce the restrictive covenant.

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Chapter 13, Problem 18CP

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Person R was hired by company I as sales manager and after few years, promoted when the company I bought a new product line based on signing restrictive covenants subjected to conditions such as person R cannot be employed in direct competitors of company I for the period of two years from termination and within three hundred miles of company I. Person R signed the agreement and promoted to vice president of sales. But, he could not perform well and got terminated. Later, person R joined the competitor of company I.

To discuss: If the company I can enforce the restrictive covenant.

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