Module 1 Legal Reasoning Exercises
1. Marc is a successful sales representative for ABC Corp. selling appliances to distributors
and retailers in Florida, Georgia and Alabama. ABC Corp has spent money to provide
Marc with specialized training and gave him access to their proprietary client list. To
protect their client relationships and investments in Marc’s training, ABC Corp. required
Marc to sign a non-compete clause that restricts him from “any position in the general
field of sales for 5 years in the United States.” Looking at the statutes and common law
relevant to your jurisdiction, would this non-compete contract be enforceable? How
might you re-write the terms to ensure high likelihood of enforcement?
– Due to the duration, scope, and geography, this clause is considered unreasonable. The
geographical area of the entire country is illogical due to its broadness. The location of business
should be more specific to make it plausible. The scope of restricting any position in the field of
sales is absurd and terms for a voided clause. Sales is an extremely large field of work, which
can pertain to not only appliances, as Marc’s current position, but clothing, food, and other
products. Lastly, the time frame is irrational. An average non-compete clause ranges from 6
months to 1 year. Due to company trainings and previous expertise, the time frame may be
considered reasonable for a longer duration such as 1-2 years.
A more reasonable agreement could be restricting Marc from any sales positions relating to
appliances for 1 to 1 ½ years, within a 20-mile radius of the existing businesses.
2. John is debating whether to hire an attorney from a small firm or one from a large, more
well-known firm. Discus the pros and cons of each choice.
