Question
Dynex, Inc., a national biotechnology firm, entered a three-year written employment contract with Allison, who was hired to oversee the research and development division responsible
Dynex, Inc., a national biotechnology firm, entered a three-year written employment contract with Allison, who was hired to oversee the research and development division responsible for developing new drugs, at an annual salary of $650,000. Dynex was working on several different highly experimental drugs, trying to bring them to market. Dynex wanted to protect its trade secrets and therefore, in the employment contract to which Allison agreed, there was a clause included that stated that Allison would not work for any of Dynex's competitors anywhere in the United States for a period of one year after her employment terminated. At the end of the second year of Allison's employment, she quit Dynex and three weeks later went to work for Sinclair Technology, Inc., the main competitor of Dynex. Is the restrictive covenant in the contract enforceable? Fully explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started