In: Operations Management
Fact Scenario:
Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super energy boosting, carbonated beverage. Power Up! is made in Michigan, but shipped to stores all across the Midwest and East Coast. Power Up! is made by QRI, and delivered on QRI. trucks, by QRI employees. QRI has in-house accounting and marketing staff.
QRI, hires Cole to its in-house marketing team to develop and implement an e-commerce strategy for marketing Power Up!. Cole signs a contract that includes a clause prohibiting him from competing with QRI during and after the employment. After creating the strategy, but before the strategy is implemented, Cole resigns from QRI's employ and opens a business to compete with QRI. In QRI's suit against Cole, to determine whether Cole may compete with QRI, what are the most important factors the court should consider? What will be the result of the suit?
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In QRI's suit against the cole, it is determined that cole can't compete with QRI and the most important factors the court should consider is that cole himself has signed up the contract with QRI that includes the clause prohibiting him from completing the company during and after the employment. Another factor the court should consider is cole wasn't loyal enough to his work while making strategies rather develop his own business he was gaining experience from the company's team and was just focus on accomplishing his personal goals. The result will be obviously in the favor of QRI as they have the signed contract with cole that has a clause that he cannot compete with the company before or after the employment. Also, the result can be that cole has to pay the damage amount to the company and also shut down his business.