Question
2) PRT, Inc. is an electronic health records company has offices in New York, Connecticut, New Jersey, Missouri, and California, and the PRT business plan
2) PRT, Inc. is an electronic health records company has offices in New York, Connecticut, New Jersey, Missouri, and California, and the PRT business plan anticipates penetration into all major metropolitan areas in the United States.PRT hires John Grantt as its Chief Executive Officer.Grantt is an experienced and successful CEO who is well known for growing successful companies, and he was formerly the Chief Executive Officer of the largest national electronic health records company.PRT enters into an executive employment agreement with Grantt with the following restrictive covenant:
During the term of Employee's employment and for a period of five (5) years following the effective date of termination of employment, Employee shall not, directly or indirectly, be employed in any capacity by a company that distributes electronic health records programs in a territory described as the United States of America.
1Using the fundamental elements of a restrictive covenant described in this lesson, provide an analysis of enforceability of this covenant.Please provide a complete explanation of your analysis and support of your conclusion.Be sure to use each element of the analytical framework described in the course lecture and materials.
2If you believe that the covenant is unenforceable, what would you change to make it enforceable?If you believe that it is enforceable, what changes would make it unenforceable?
3If the PRT company is successful in penetrating every major market in the United States, would your answer change?Why or why not?
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