Robert was one of six Area Managers working for Southwest Manufacturing. Each of the six Area Managers was responsible for sales in an assigned territory and worked to build goodwill for Southwest, establish customer relationships, and promote Southwest’s business to the public. Robert had been working for Southwest for four years and during that time, two of the other Area Managers had left Southwest, one going to work for a competing business and the other opening up a business of his own which competed with the business of Southwest. After that second person left, Southwest came to Robert and to the other then-serving Area Managers and requested that they each sign a restrictive covenant agreement that prohibited the Area Manager, upon termination of employment, from going to work for any business which competed with that business of Southwest, and from providing similar services to any company in any area where Southwest was currently providing services to its customers for a period of 24 months.

 
Robert is now considering leaving the employment of Southwest, has an opportunity to go to work in a different part of the country but in a state where Southwest conducts business and asks you to advise him regarding the enforceability of his restrictive covenant agreement with Southwest. Please review each of the relevant issues and provide your conclusion as to whether this agreement is enforceable by Southwest against Robert.

    • 8 years ago
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