Question

For over five years, Rick was the CEO of JB Guitars Inc, a corporation operating a chain of retail guitar stores. He had gained tremendous practical experience and decided to start his own business selling guitars. When he first started working at JB Guitars, Rick agreed not to carry on a competing business for two years after he ended his employment with the corporation. To avoid breaching that contract, Rick incorporated a corporation named Generation X Guitars Inc to carry on the business. He is the sole shareholder, director, and president. JB Guitars claims that the new corporation is just a way of getting around the non-competition agreement and has sued for a court order prohibiting Generation X Guitars from carrying a business competing with JB Guitars. Will JB Guitars be successful?

Answer 1

From my point of view, Will JB Guitars not be successful because it is not at all, focusing on Competition and nowadays for the survival of the business competition is very important. The game gives Reassurance, which means The availability of play means that buyers can choose either your trade or another trade. It discloses your Secret Sauce because when you stand out from your competitors, it is not that you are so unlike; instead of being so same to other organizations, it has transparent qualities that set apart. Grow the right online presence because one can stand better than your competitors in search engine success pages by developing your online presence. It helps buyers more speedily find You Competitors aren’t always reducing from your business, increasing loyalty. That is essential because the more a customer selects your commodity over a competitor’s, the more probable they are to carry on with selecting you, Breeds Brand Evangelists. After all, Competition doesn’t just make loyal buyers. It gives those buyers chances to advocate for, support, or guard your brand; more importantly, it opens your eyes to growth, allows for Market Research, and guides your innovative skills.

JB Guitars will not be successful because of the following reasons as explained below:

1.Violating the Constitutional Right: Non-compete agreements violate the constitutional right of a person of Right to earn a living or livelihood. Everybody is free to do trade and there are no restrictions on it.

2. Not enforceable: A non-compete agreement, in this case, is not enforceable. Due to the following reasons:

Firstly, in most of the states of America non-compete agreement holds no enforceability. Mostly, states give judgments against this agreement.

Secondly, every person has a right to do any trade or business.