Question

Marcie is hired by Susan’s Wetsuits Inc., to create a web-based marketing strategy for Susan’s new line of wetsuits. Marcie signs a contract that includes a clause prohibiting her from competing with Susan’s during and after the employment. Before the strategy is implemented, Marcie resigns from Susan’s employ and opens a business to compete with Susan’s. In Susan’s suit against Marcie, discuss the most important factor the court should consider in determining whether Marcie should be allowed to compete with Susan

Answer 1

Court of law will consider the non-competing clause of the law as well as ability of the Marcie’s business to harm Wetsuits Inc. The first important factor considered by the court is the ability, understanding and knowledge owned by Marcie regarding the strategy developed for the company. It can directly harm the company. The second important factor is the area of operation of the business started by Marcie and its conflict with the business. The non-competing clause considers the area of business operation as well as time of starting a competing business. The third important factor is the size of the Wetsuit Inc. in terms of the market share and the capabilities of the Marcie’s business to harm it. For example, a big MNC’s business does not suffer much from the entrepreneurial venture. The fourth important factor is the knowledge of the clientele of the Wetsuits Inc. that can be used by Marcie for her own business and create harm to the former employer.