You are partners in Too Strange To Eat, a bakery in Tampa, Florida that specializes in exotic, expensive pastries. You serve as the General Counsel (ie. the in-house lawyer). The business has grown quickly in its first 4 years and now sells products to stores and restaurants throughout Florida, Georgia and the Carolinas. The bakery is well known in these areas for its secrecy regarding the recipe for your famous “Ant” cake. Its customer list is one of your prized possessions, with customers from all over this region, some from word of mouth, others from online.
Sandra has applied for a management position and appears to be the perfect candidate. She has 5 years experience as a food wholesaler and a reputation as a superb amateur chef. Sandra would be hired to analyze the market for new products, create new pastries and other foods, and assist in selling new and existing products. Sandra would work with company chefs, salespeople and customers –just about everyone.
You are concerned that if Sandra leaves, she will have confidential information about your business, and that she may either start her own company with this information or work for a competing business.
Your assignment, as in-house counsel, is to draft a non-compete clause for Sandra’s contract that a court would enforce. Your non-compete clause should be no less than a half a page, single spaced and Times New Roman: 12-point font. That's the minimum, but it can be longer. You may have sub-sections to your clause. Please include at least three resources that assisted in your drafting this clause on a separate page. For one of the three resources, please discuss in detail (250+ words) why that particular resource served you best, (e.g. why did you trust it, where was it from, why is it reliable, etc.).
Answer:-
A competition clause or solicitation clause seeks to bar an employee fromstealing customers from a former employer for purposes of starting their own business or stealing client to another competing company because of the fiduciary relationship between them and the company customers, as agents of the company. Below is an example of a competition clause.
Step-by-step explanation
During the entire period of this contract, and for 5 years after Too Strange To Eat's relationship with the employee has ended for whatever reason, the employee will not work as the owner, agent, consultant, partner, director, officer, or employee, or partake in any other position with a rival company. It, therefore, means that the employee must not participate in any work related to bakery and baking in in Tampa, Florida.
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