Reference no: EM131473278
Question: Donald Ray Dawson was an initial 49 percent investor and promoter in Temps Plus, Inc., a Blytheville, Arkansas, temporary-employment agency. In May 1996, Temps Plus bought all of Dawson's 49 percent interest in the corporation for $95,000. As part of the transaction, Dawson agreed "that for a period of five (5) years from the execution of this Agreement, he will not directly or indirectly, whether as an owner, partner, or employee, compete with Temps Plus, Inc., within a radius of seventy (70) miles from Blytheville, Arkansas." Dawson later did not recall reading that portion of the agreement. Approximately one year later, Dawson, along with his brother, hired two employees away from Temps Plus in anticipation of creating the Dawson Employment Agency. Two weeks later, Dawson and his brother formed their own employment agency corporation, Steve Dawson Employment Services, Inc. (SDES), in Blytheville. In April, Temps Plus sued SDES for breach of the noncompete agreement. How should the court rule, and why?
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