Question
Sally Ayes owns a business, Ayes Wide Shut, Inc., that manufactures and dispenses eyeglasses. Doctor Cleervision is an optometrist who performs eye exams, writes prescriptions
Sally Ayes owns a business, Ayes Wide Shut, Inc., that manufactures and dispenses eyeglasses. Doctor Cleervision is an optometrist who performs eye exams, writes prescriptions for glasses and contact lenses, and diagnoses and treats eye diseases. Doctor Cleervision leases office space and equipment from Sally Ayes. The lease requires Doctor Cleervision to give all gross proceeds to Sally in return for a $150,000 guaranteed annual income. The lease also requires that Doctor Cleervision be physically present at the location during specific business hours. Additionally, the lease agreement also includes an ancillary covenant not to compete provision stating that Doctor Cleervision will not, for the period of one year following termination of the agreement, engage in the practice of optometry or the dispensing of optical products within a radius of three miles from the location where Sally Ayes operates her business. On January 1, Doctor Cleervision stopped seeing patients at Ayes Wide Shut, and immediately began practicing optometry (not manufacturing and dispensing eyeglasses) less than three miles away at another location. Sally Ayes filed a lawsuit against Doctor Cleervision alleging that Cleervision violated the terms of the noncompetition clause. Doctor Cleervision argues that the noncompetition clause is not enforceable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started