For over five years, Rick was the CEO of JB guitars inc. , a corporation operating a chain of retail guitar stores. He had gained tremendous practical experience and decided to start his own business selling guitars. He had entered into an agreement with JB guitars when he first started working there under which he promised that he would not carry on a competing business for 2 years after he ended his employment with JB guitars. To avoid breaching that contract, Rick incorporated a corporation named generation x guitars inc. to carry on the business. He is the sole shareholder, director and president. Rick's old employer claims that the new corporation is just a way of getting around the non-competition agreement and had sued for a court order prohibiting generation x guitars from carrying a business competing with JB guitars. Will JB guitars be successful?

I want help in making a full legal analysis of this question keeping in mind the rules of corporation as well as law of piercing the corporate veil .