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[Amazing Fabrics] Amazing Fabrics [Amazing Fabrics] Amazing Fabrics, owned by Peri, has provided top-quality draperies, tablecloths and other linens to many of Chicago's high-end hotels for decades. Peri has an employment contract with his top designer, Calvin, which states that, if Calvin leaves Amazing Fabrics, he is prohibited from working for any competitor and that the clause remains effective even if the business is sold to new owners. Peri decides to sell his business to Lisette and retire. The contract for the sale of the business includes a clause that Peri shall not open a business that competes with Amazing Fabrics anywhere in the Chicago metropolitan area for two years. A year after signing the contract, Peri realizes he is bored in his retirement and opens Fine Fabrics, which provides tablecloths and other linens to Chicago area restaurants and hotels. Peri calls Calvin and persuades him to leave Amazing Fabrics and work for Peri. Many of Lisette's customers prefer to work with Calvin and move their business to Peri's new company. Lisette wants to sue both Peri and Calvin for breach of contract. MC Qu. 16-84 What would likely be the outcome of... What would likely be the outcome of Lisette's breach of contract claim against Peri?

[Amazing Fabrics] Amazing Fabrics [Amazing Fabrics] Amazing Fabrics, owned by Peri, has provided top-quality draperies, tablecloths and other linens to many of Chicago's high-end hotels for decades. Peri has an employment contract with his top designer, Calvin, which states that, if Calvin leaves Amazing Fabrics, he is prohibited from working for any competitor and that the clause remains effective even if the business is sold to new owners. Peri decides to sell his business to Lisette and retire. The contract for the sale of the business includes a clause that Peri shall not open a business that competes with Amazing Fabrics anywhere in the Chicago metropolitan area for two years. A year after signing the contract, Peri realizes he is bored in his retirement and opens Fine Fabrics, which provides tablecloths and other linens to Chicago area restaurants and hotels. Peri calls Calvin and persuades him to leave Amazing Fabrics and work for Peri. Many of Lisette's customers prefer to work with Calvin and move their business to Peri's new company. Lisette wants to sue both Peri and Calvin for breach of contract. MC Qu. 16-84 What would likely be the outcome of... What would likely be the outcome of Lisette's breach of contract claim against Peri?

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[Amazing Fabrics] Amazing Fabrics [Amazing Fabrics] Amazing Fabrics, owned by Peri, has provided top-quality draperies, tablecloths and other linens to many of Chicago's high-end hotels for decades. Peri has an employment contract with his top designer, Calvin, which states that, if Calvin leaves Amazing Fabrics, he is prohibited from working for any competitor and that the clause remains effective even if the business is sold to new owners. Peri decides to sell his business to Lisette and retire. The contract for the sale of the business includes a clause that Peri shall not open a business that competes with Amazing Fabrics anywhere in the Chicago metropolitan area for two years. A year after signing the contract, Peri realizes he is bored in his retirement and opens Fine Fabrics, which provides tablecloths and other linens to Chicago area restaurants and hotels. Peri calls Calvin and persuades him to leave Amazing Fabrics and work for Peri. Many of Lisette's customers prefer to work with Calvin and move their business to Peri's new company. Lisette wants to sue both Peri and Calvin for breach of contract. MC Qu. 16-84 What would likely be the outcome of... What would likely be the outcome of Lisette's breach of contract claim against Peri?
Transcribed Image Text:[Amazing Fabrics] Amazing Fabrics [Amazing Fabrics] Amazing Fabrics, owned by Peri, has provided top-quality draperies, tablecloths and other linens to many of Chicago's high-end hotels for decades. Peri has an employment contract with his top designer, Calvin, which states that, if Calvin leaves Amazing Fabrics, he is prohibited from working for any competitor and that the clause remains effective even if the business is sold to new owners. Peri decides to sell his business to Lisette and retire. The contract for the sale of the business includes a clause that Peri shall not open a business that competes with Amazing Fabrics anywhere in the Chicago metropolitan area for two years. A year after signing the contract, Peri realizes he is bored in his retirement and opens Fine Fabrics, which provides tablecloths and other linens to Chicago area restaurants and hotels. Peri calls Calvin and persuades him to leave Amazing Fabrics and work for Peri. Many of Lisette's customers prefer to work with Calvin and move their business to Peri's new company. Lisette wants to sue both Peri and Calvin for breach of contract. MC Qu. 16-84 What would likely be the outcome of... What would likely be the outcome of Lisette's breach of contract claim against Peri?
O Peri would likely be successful because covenants not to compete in conjunction with the sale of a business are generally not enforceable. Peri would likely be successful because, although covenants not to compete in conjunction with the sale of a business are generally enforceable, Lisette's contract was unreasonable in that it would have restricted Peri from opening any business. Peri would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location. Lisette would likely be successful because covenants not to compete in conjunction with the sale of a business are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location. Lisette would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's. contract was for a reasonable length of time and a reasonable location.
Transcribed Image Text:O Peri would likely be successful because covenants not to compete in conjunction with the sale of a business are generally not enforceable. Peri would likely be successful because, although covenants not to compete in conjunction with the sale of a business are generally enforceable, Lisette's contract was unreasonable in that it would have restricted Peri from opening any business. Peri would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location. Lisette would likely be successful because covenants not to compete in conjunction with the sale of a business are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location. Lisette would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's. contract was for a reasonable length of time and a reasonable location.
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