Question
Jordan owns the Sugar Club restaurant in Wellington. Ana has worked as a chef for Jordan for some years. Last year Ana developed a new
Jordan owns the Sugar Club restaurant in Wellington. Ana has worked as a chef for Jordan for some years. Last year Ana developed a new hot sauce recipe. This hot sauce is so popular Jordan has been bottling and selling it to shops and restaurants all over the lower North Island. It is sold under the label of "Jordan's Hot Sauce".
Jordan is determined to keep Ana's recipe for hot sauce confidential. Ana is the only one allowed to make the hot sauce, and Jordan has instructed Ana not to tell anyone else the ingredients.
Recently, Jordan has become concerned Ana might be looking for a new job. She has drafted the following restraint of trade agreement which she plans to ask Ana to sign.
"I agree that if I leave Jordan's employment, I will not work in any food related role in New Zealand for a period of two years from the date of termination."
Jordan has not done this yet when she asks you for advice. She wants to know whether her proposed restraint of trade agreement will effectively protect her rights in relation to the hot sauce recipe.
Required:
Referring to relevant law, discuss Jordan's proposed restraint of trade agreement. Advise her on the likelihood of it being enforced and suggest how she might improve this likelihood. (NZ case law)
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