As Part of a Large Multinational Corporation, You Are Working

question 20

Essay

As part of a large multinational corporation, you are working on a deal to buy a small company from a group of young upstarts who will all benefit handsomely from the transaction.It is your custom to include a restrictive covenant in such contracts to prevent such young upstarts from directly competing with the company they just sold.Explain the approach taken by courts to covenants in restraint of trade and then provide an example of a restrictive covenant that is likely to be upheld if challenged in court, and an example of one that is likely to be struck down if challenged in court.

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Definitions:

Surface Diversity

Observable differences among individuals in a group, such as ethnicity, age, gender, and physical abilities, without necessarily considering deeper aspects like values or experiences.

Disjunctive Tasks

Tasks that require a group to select a single solution or answer from among those proposed by its members, often relying on the member with the highest ability related to the task.

Best Group Member

An individual within a team or group who exemplifies high performance and positive contributions, often characterized by strong collaboration and leadership skills.

Diverse Groups

Collections of individuals who differ from one another in various dimensions, including but not limited to race, ethnicity, gender, age, and culture.