Reference no: EM133297827

Book: Essentials of Business Law and the Legal Environment. 13th Edition

Chapter 13

1. The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the HI Company, agreeing "not again to go into the manufacture of harvesting machines anywhere in the United States." The Dear Corporation, which has national and international goodwill in its business, now begins the manufacture of such machines contrary to its agreement. Should the court stop it from doing so? Explain.

2. Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson. Leigh rents linens and industrial uniforms to commercial customers; the soiled linens and uniforms are picked up at regular intervals by the route drivers and replaced with clean ones. Every employee is assigned a list of customers whom she services. The con- tract of employment stated that in consideration of being employed, on termination of his employment, Close would not "directly or indirectly engage in the linen supply business or any competitive business within Central City, Illinois, for a period of one year from the date when his employment under this contract ceases." On May 10 of the following year, Close's employment was terminated by Leigh for valid reasons. Close then accepted employment with Ajax Linen Service, a direct competitor of Leigh in Central City. He began soliciting for- mer customers he had called on for Leigh and obtained some of them as customers for Ajax. Will Leigh be able to enforce the provisions of the contract? Why or why not?

3. On July 5, 2018, Bill and Donald entered into a bet on the out- come of the 2018 congressional election. On January 28, 2019, Bill, who bet on the winner, approached Donald, seeking to collect the $3,000 Donald had wagered. Donald paid Bill the wager but now seeks to recover the funds from Bill. Result?