.In answering the following questions, please givereasonsfor your answers and provide relevantstatutory lawand/orcase lawas authority for your answers.

CASE STUDY ONE

Carl is a mortgage broker employed by Ozzie Loans Pty Ltd (Ozzie Loans). His employment contract contains a restraint of trade clause stating that he must not compete with Ozzie Loans for two years after his employment ends.

After building up contact with many clients over several years, Carl leaves Ozzie Loans and, within the two year non- compete period, he incorporates a company known as Betta Loans Pty Ltd (Betta Loans), with his wife as sole shareholder and director.

Like Ozzie Loans, Betta Loans conducts mortgage broking business and Carl manages the business - his wife is not actively involved. Carl targets the clients of Ozzie Loans with advertising material and many of them take their business to Betta Loans.

When Ozzie Loans finds out about this conduct, it takes action to obtain an injunction to prevent Carl from continuing to breach the restraint of trade clause in his employment contract with his former employer. Advise whether Ozzie Loans could succeed in its action against Carl and/or Betta Loans.