Week 4.docx - Baby Products Inc hires Cole to develop and...

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Baby Products, Inc., hires Cole to develop and implement an e-commerce strategy for marketing Baby’s products. Cole signs a contract that includes a clause prohibiting him from competing with Baby during and after the employment. Before the strategy is implemented, Cole resigns from Baby’s employ and opens a business to compete with Baby. In Baby’s suit against Cole, to determine whether Cole may compete with Baby, what is the most important factor the court should consider? In determining whether Cole may compete with Baby, the court should consider, most importantly, whether the covenant not to compete is necessary to protect Baby’s legitimate business interests. A covenant not to compete can v iolate the public policy to promote competi-tion in the economy. If so, it would be an unreasonable restr aint of trade. To be enforceable, a covenant not to compete should be ancillary to an oth-erwise enforce able contract, which, in this question, is the employment contract. A covenant not to compete should co
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