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Chapter 15 - Illegality
V. ANSWERS TO PROBLEMS AND PROBLEM CASES:
1. The employees. The court noted that the plaintiffs would have a legitimate business
interest in protecting its proprietary system through a restrictive covenant if the covenant was
reasonable in duration and geographic extent. With that being said, the court went on to say
that the plaintiffs have no legitimate interest in preventing the employees from teaching
2. No. The court stated that “[t]he form is a standardized contract offered to Broemmer on a
‘take it or leave it’ basis. In addition to removing from the courts any potential dispute
concerning fees or services, the drafter inserted additional terms potentially advantageous to
3. No. The court found that the contract was illegal and void. Since the parties were in pari
4. No. The court stated that a "basic principle of contract law is that agreements to commit a
crime are illegal, void." Courts will not order damages for the breach of such contracts, so
5. No. Because the employer operated the type of business where repeat customers were
unlikely, there is no proprietary interest in its part in any “stock of customers” and their good
6. The plaintiff, a physician, entered into a contract of employment with the defendant medical
practice. The contract included a non-compete. The plaintiff came to believe that the
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 15 - Illegality
7. The court noted that the doctrine of unconscionability generally requires both procedural and
substantive unconscionability, but a sliding scale is applied –the more substantive repression
8. Marcinczyk was required to attend a police academy as a condition of being hired as a police
officer. All recruits at the police academy were required to sign an exculpatory agreement
9. Yes. The court held that the clause was procedurally unconscionable because there was such a
disparity of bargaining power between the parties and the employer pressured Mantor to sign
10. Yes. The court examined two issues: (1) the relative bargaining power of the parties, their
relative economic strength, and the alternative sources of supply; and (2) whether the
challenged term was substantively reasonable. The court noted that a last-minute cancellation
IV. ONLINE RESEARCH: EXAMPLES OF NON-COMPETES AND EXCULPATORY
AGREEMENTS
Using key word searches such as “non-compete” and “release AND sample,” students should be
able to find a number of examples. Some examples of non-competes can be found at
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
