Question
Greg Brady was an executive officer with responsibility for the U.S. operations of Telecom Corporation, a company providing global telecommunications services. Under a covenant not
Greg Brady was an executive officer with responsibility for the U.S. operations of Telecom Corporation, a company providing global telecommunications services. Under a covenant not to compete, Brady agreed that for a period of eighteen months after termination from employment, he would not provide services . . . in competition with Telecom . . . to any person or entity which provides products or services identical or similar to products and services provided by Telecom . . .within the territory. Territory was defined to include the geographic area in which Brady provided services to Telecom, which was globally. The services included management, strategic planning, business planning, administration, or other participation in or providing advice with respect to the communications services business, in any capacity. Brady announce his intent to resign and accept a position as chief executive officer of Sprint Corp., a competitor of Telecom. Telecom filed suit in New Jersey state court against Brady, claiming in part that his acceptance of employment with Sprint would violate the covenant not to compete. Is the covenant legal? Should it be enforced? Why or why not?
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