Written Assignment: Simulation Exercise - Comparative Research Grid

This exercise is based on the stipulated facts found on pages 320-325 of your textbook.

Business Law Simulation Exercise for Managers: Contracts

Assignment Sheet

Introduction: In this simulation, students learn the fundamentals of legal research and then apply those skills to develop a grid/chart that compares the enforceability tests, legal standards and requirements for non-compete restrictive covenants in Florida to that of the mythical State of Longville.

Assignment:

Review Chapters 6 and 7, then read theStipulated Factsand Longville cases in the simulation.

You will utilize Nexus Uni, a legal database available as a "databases" link from the EFSC library, for conducting your legal research. There are three tutorial videos included in the Week 4 Module of varying lengths. The first two are most helpful, while the third one is a longer more comprehensive webinar. There is also a "Tips" link at Nexus Uni to provide assistance in how to search for case law. There are also free databases such as FindLaw or the Legal Information Institute at Cornell Law School for looking up statutory and case law.

Prepare a grid that compares the laws governing restrictive covenants in medical practices in the State of Longville with the law in your own state. Be sure to name the cases or statutes that you use as a reference to complete the grid.

The grid should be prepared as follows:

Longville

Florida Law

Legitimate business interests in medical practices recognized by Longville courts and statutes; (Give examples)

Legitimate business interests in medical practices recognized by Florida courts and statutes: (Give examples)

Balancing Tests: Employer vs. Employee interests; and Employer/Employee interest verses Public interest

Balancing tests: Florida law

Reasonably necessary in scope and duration (Give examples from cases)

Reasonable scope and duration according to Florida law (cases / statutes)

Policy on late work: Late work will NOT be accepted except in cases of documented emergency

Questions you should address in conducting your research into the law:

Issue

Sample questions

Legitimate business interest

To NA:What specific legitimate business interests are you alleging?

o How can medical practices have trade secrets?

o Can a small practice actually generate enough goodwill to qualify as a legitimate business interest?

o What kind of investment did you make in Blackwell that is similar to the one in the Wellspan case?

To Blackwell:Why isn't NA's patient referral base protectible?

Balancing Tests

To Blackwell:Doesn't the balancing test weigh favor of NA since they are merely attempting to protect their patient base and referral base? Since the practice is specialized, isn't it even more important to enforce the covenant given the devastating impact that your relocation could have on their revenue from patients?

To NA:Given the lack of neurologists in the region, doesn't public policy demand that Dr. Blackwell be released from the agreement despite your protectible interests? Doesn't the restriction result in a situation whereby patients cannot choose their own physician?

Competition

To NA: Could it reasonable be said that NA is really not a "competitor" of Galway Hospital? Does a small practice really compete with a large city hospital for patients?

To Blackwell:If your current patients find out that you left, isn't it reasonable to assume they would be willing to drive 30-40 minutes extra in order to continue care under you? If so, isn't that competition?

Reasonably necessary in scope and duration

To Blackwell:Given that the neurology is practiced throughout Longville, why can't NA protect their interests in their patient base and referral base in entire the 50-mile radius? Couldn't you simply locate your practice outside the restricted area?

To NA:The case law does not give an exact number of years, but there are no cases that provide for a three-year covenant such as the one Blackwell signed. Why is three years necessary to protect your interest?