Demonstrate Your Understanding of Covenants Not to Compete in Massachusetts
Remember to number and differentiate each response in your submission
Briefly define a non-complete agreement.
What is the difference between a covenant not to compete in a contract versus a covenant not to compete when selling a business?
Refer to the Massachusetts Non-Competition Agreement Act (linkLinks to an external site.). Be sure to acknowledge provisions of the Garden Leave (section (b) (vii), in the draft agreement.
Once the draft non-compete clause is complete, clearly explain why the clause is enforceable
BRING A HARD COPY OF YOUR SUBMISSION TO CLASS!
Draft an enforceable non-compete
Assume that you are partners in a bakery in the greater Boston area that specializes in exotic and artisanal pastries. The business has grown quickly in its first four years, and now sells its products to stores and restaurants throughout New England. Betty has applied for a management position and appears to be a perfect candidate. She has five years experiences as a food wholesaler and a reputation as a superb amateur chef. Betty would analyze the market for new products, create new pastries and other foods, and assist in selling new and existing products. Betty would work with company chefs, salespeople, and customers- just about everyone.
Because your bakery does have proprietary products, extensive customer lists, and experienced salespeople, you and your partners would like to include a non-compete agreement as part of her employment contract. Because you’ve taken the Legal Environment of Business, you have been tasked with drafting a legally enforceable covenant not to compete before you and your partners run the employment contract past legal.
NB: The company plans to offer Betty $80,000 a year. It will not be a term contract.
Demonstrate Your Understanding of Covenants Not to Compete in Massachusetts
Remember to number and differentiate each response in your submission
Briefly define a non-complete agreement.
What is the difference between a covenant not to compete in a contract versus a covenant not to compete when selling a business?
Refer to the Massachusetts Non-Competition Agreement Act (linkLinks to an external site.). Be sure to acknowledge provisions of the Garden Leave (section (b) (vii), in the draft agreement.
Once the draft non-compete clause is complete, clearly explain why the clause is enforceable
BRING A HARD COPY OF YOUR SUBMISSION TO CLASS!
Draft an enforceable non-compete
Assume that you are partners in a bakery in the greater Boston area that specializes in exotic and artisanal pastries. The business has grown quickly in its first four years, and now sells its products to stores and restaurants throughout New England. Betty has applied for a management position and appears to be a perfect candidate. She has five years experiences as a food wholesaler and a reputation as a superb amateur chef. Betty would analyze the market for new products, create new pastries and other foods, and assist in selling new and existing products. Betty would work with company chefs, salespeople, and customers- just about everyone.
Because your bakery does have proprietary products, extensive customer lists, and experienced salespeople, you and your partners would like to include a non-compete agreement as part of her employment contract. Because you’ve taken the Legal Environment of Business, you have been tasked with drafting a legally enforceable covenant not to compete before you and your partners run the employment contract past legal.
NB: The company plans to offer Betty $80,000 a year. It will not be a term contract.
