Karl is employed by a chocolate factory, that specializes in making the finest chocolate with a family secret that he learnt on the job. This process is used only by this company. His employment contract states that if he leaves the company he must not work in a competing company for the next 3 years. Karl now wishes to leave the job and set up his own chocolate business. i. Can Karl set up his own chocolate business? why or why not? ii. Why would the company not want former workers to enter the business as soon as they leave their employment? iii. Is three years a reasonable time for Karl; why or why not?
Karl is employed by a chocolate factory, that specializes in making the finest chocolate with a family secret that he learnt on the job. This process is used only by this company. His employment contract states that if he leaves the company he must not work in a competing company for the next 3 years. Karl now wishes to leave the job and set up his own chocolate business.
i. Can Karl set up his own chocolate business? why or why not?
ii. Why would the company not want former workers to enter the business as
soon as they leave their employment?
iii. Is three years a reasonable time for Karl; why or why not?
iv. If the company finds out that Karl started his business immediately, what
can they do?
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