Question
Judith owns a management company with an excellent reputation and client base. She sells her management company to Shawn, and the sales contract includes a
Judith owns a management company with an excellent reputation and client base. She sells her management company to Shawn, and the sales contract includes a non-compete clause restricting Judith from opening a similar business for one year within a 10-mile radius of her former office. An artist, whom she has never worked with, approaches her 6 months after selling her original management company and wants Judith to represent her.Judith decides that this is a good opportunity and sets up her new business for her one new client five miles away from her original company. A court would probably
a. grant an order/injunction barring her from operating the new office.
b. order confiscation of all of her new client files and turn them over to Shawn.
c. refuse to become involved, as the non-compete clause was illegal.
d. refuse to enforce the non-compete clause, as it is unreasonable regarding time and geographic area.
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