Chapter 21: Case Problem #5

Holmes' role as president of After-School Care Corp. might seem to be in conflict with his decision to purchase Pro-Provider. This is because it is typical in such instances that high-ranking personal will be party to non-compete agreements which are intended to prevent them from exploiting their role within the framework of an organization as a way of ultimately undermining said organization.

However, a Supreme Court of Missouri decision reveals that non-compete agreements are not a cut-and-dry statement of prohibition against providing competition for a former employer. As Corrigan & Kass (2006) report, "protection of the employer, not punishment of the employee, is the essence of the law."An employer cannot extract a restrictive covenant from an employee merely to protect himself from competition.' The Supreme Court of Missouri has stated that '[a]greements of this kind restrain commerce and limit the employee's freedom to pursue his...
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