Reference no: EM131225678

Review the following situation and determine the best steps to take given your understanding of this week’s introduction to contract law.

Assume you have been in operation for two years now and that your business has developed a significant customer base. You have been hiring employees for key sales/marketing executive management positions, and thankfully, you had an ace attorney at the start of your business who created a great employee manual as well as employment agreements that included non-compete and non-disclosure provisions to protect your trade secrets and other intellectual property.

You learn that Robin Steele, one of your key sales managers, has given her two week notice and she is going to be working for your primary competitor, Raiders, Inc., located 30 miles from your office. You immediately pull Robin into your office to ask her about the situation and go over the employment agreement. Robin confirms that she did accept the position with Raiders, Inc. You thank Robin for her honesty, and ask how the change in employment came to be. You also provide Robin a copy of her employment agreement with the non-disclosure and non-compete provisions highlighted. You want to make sure Robin understands that she may not take any clients or client information with her to Raiders, Inc., and that, unfortunately, you will have no choice but to enforce the non-compete provision. You then advise Robin there is no need for her to complete the two weeks, and obtain her office keys, giving her 15 minutes to clear out her belongings. You contact security to escort Robin to her office and oversee the situation. Security makes sure Robin does not use her computer which your crack IT department has already disabled. Robin leaves without incident and you place a call to your attorney.

However, once your IT department has an opportunity to review Robin’s entry and use log it finds that Robin downloaded the customer lists, as well as other key company information onto a thumb drive one week prior to his departure. You also learn that Robin was copying her personal email each time she emailed a customer, and that she has sent emails to other employees in your company encouraging them to follow her to Raiders, Inc. for new employment. Robin has been with the company since its inception and has therefore been instrumental in forming a bond and trust with your customers so you are concerned about the financial impact this situation will have on your business.

1. What laws are at issue in this situation? (Remember to review the material we have learned relating to contract actions and employment agreements). (Most important question)

2. What are the legal issues? (Did Robin adhere to all the terms of the employment agreement? What parts of the employment agreement is the company concerned Robin will not adhere to in the future based on her actions before leaving? ) Be sure to set out your issues in question format, and in detail.

3. How do you believe a court will rule on the legal issues? Start by stating what you would believe the court would rule for each of the legal issues you have set out in #2. Then discuss your reasoning in coming to this decision for each of the issues. I am looking for you to discuss the law(s) and apply them to the facts of the case. Be clear in your reasoning, and detailed in your discussion.

4. What steps should the company take to protect its interests and reputation? Look at each issue and discuss what the company could do to protect itself.