Unit 6 DISCUSSION - Unit 6 Assignment Points Possible: 40...

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Unit 6 Assignment Points Possible: 40 Due Date: Friday, July 8 Part 1 - Noncompete Agreements Your authors discuss covenants (another word for contracts) not to compete on Page 274 of your text. These are also known as non compete agreements or even restrictive covenants. Here is an article about how Iowa courts view non compete agreements . The URL is http://library.findlaw.com/2000/May/1/128395.html . Such agreements are often used by employers when they hire a new person. 1. Under Iowa law, what are the three general factors a court will review to determine whether a non compete agreement is legally binding? (Use your own words as much as possible -- under no circumstances cut and paste the answer!! Try to put this in your own words. You can do it!) 2. Jessica is hired by Big Box Retail to work as a cashier and stocking person and paid $9/hour. Big Box Retail has Jessica sign an agreement that states if she leaves Big Box Retail she will not work for a competitor for a period of one year anywhere in Iowa. Consider the Iowa test for a non compete agreement. With the 3-prong test in mind, would the non compete agreement signed by Jessica be legally binding? Why or why not? 3. Mary Anne is hired by Kut Kut Hair Salon to work as a stylist. (She is an employee - not an independent contractor.) At the time Mary Anne is hired, she signs a non compete agreement that states if she leaves Kut Kut she promises not to work as a hair stylist either as an employee or an independent contractor (or have her own salon) for a period of two years within a 50 mile radius of Kut Kut Hair Salon. Six years after going to work with Kut Kut, Mary Anne leaves and opens a hair salon about a 1/2 mile away from Kut Kut. Nearly all of her former customers come to her new business. Kut Kut wants to get an injunction to prohibit Mary Anne from opening her new hair salon, etc. If you were the judge, how would you rule in this case and what would be the basis of your legal resasoning? Part 2 - A Good Deal or . ... a Steal?! On Page 284 your authors present a very famous case called Campbell v Carr . This case was decided by a South Carolina appeals court in 2004. (If the link does not work, just Google the name of the case.) The authors present an overview of the case on Pages 284-285 in Case Problem 11-4. 4. What are the basic, important facts in this case? What happened? 5. The buyers, Mr. and Mrs. Campbell, claimed the court should order that the real estate contract (wherein they agreed to buy and Mrs. Carr agree to sell 108 acres of land for $54,000) be "specifically performed." What does the remedy of specific performance mean (in every day language)? 6. Did the South Carolina appeals court rule that the seller, Martha Carr, was required to
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Unit 6 DISCUSSION - Unit 6 Assignment Points Possible: 40...

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