Question
OmniHealth, a national biotechnology firm, executed a three-year written employment contract with Edgar, who was to be in charge of the research and development division
OmniHealth, a national biotechnology
firm, executed a three-year written employment
contract with Edgar, who was to be in charge of
the research and development division
responsible for developing new drugs, at an
annual salary of $350,000. At that time,
OmniHealth was working on several different
highly experimental drugs, trying to bring them
to market. OmniHealth was anxious to protect its
trade secrets and Edgar agreed in his
employment contract that he would not work for
any of OmniHealth's competitors anywhere in
the United States for a period of one year after
his employment terminated. At the end of the
second year of Edgar's employment, Edgar
resigned and promptly went to work for
Technology, Inc. Technology, Inc. had known of
Edgar's contract with OmniHealth, but
persuaded Edgar to breach that contract and to
become an employee of Technology, Inc.
(a) What rights, if any, does OmniHealth
have against Edgar? Explain.
(b) What rights, if any, does OmniHealth
have against Technology, Inc.? Explain.
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