Utilize a modified version of the “Legal Reasoning Group Activity 14-10” on p. 279 of the textbook.  Assuming the facts given in the textbook, write a 2-3 page paper (double-spaced) that presents several perspectives on covenants not to compete:

1. What are the company’s interests in non-competes that justify their use and enforcement?  How would you evaluate these interests in light of your ethical framework and commitments?
2. What are the countervailing interests that work against enforcement of non-competes?  In other words, why should they not be enforced? Again, argue from your ethical perspective.
3. What are the interests of society at large in non-competes?
4. One trend in the past few years in some industries seems to be requiring summer interns at companies to sign non-competes, even when they are completing the internship for college credit.  Should a court enforce such a non-compete? Why or why not? (See Wall Street Journal article).  What about a fast-food sandwich shop that requires sandwich makers to sign a non-compete (See Forbes article)?  If a company has no intention of enforcing a non-compete under either of these circumstances (against summer interns or sandwich makers), what is the purpose of requiring the worker to sign?  And is that purpose ethical?
5. How should courts balance these competing interests?  Should courts enforce all non-competes given the social good of freedom of contract?  Or should they refuse to enforce these contracts because of antitrust concerns about restraints of trade?  Or should they reform and then enforce non-competes to be less onerous than is typical when drafted?

Rubric

Assignment Rubric – Covenants not to compete project