Question: A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous

A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $6,000 per month. The contract states that should Perlee leave the employment of Hotel Lux for any reason, he will not work as a chef for any hotel or restaurant in New York, New Jersey, or Pennsylvania for a period of one year. During the first six months of the contract, Hotel Lux heavily advertises Perlee as its head chef, and business at the hotel is excellent. Then a dispute arises between the hotel management and Perlee, and Perlee terminates his employment. One month later, he is hired by a famous New Jersey restaurant just across the New York state line. Hotel Lux learns of Perlee’s employment through a large advertisement in a New York City newspaper. It seeks to enjoin (prevent) Perlee from working in that restaurant as a chef for one year. Discuss how successful Hotel Lux will be in its action.

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Contracts in restraint of trade are usually illegal and unenforceable An exception to this rule appl... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

111-L-B-L-C (564).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

During the first six months of the year, yields on long-term government debt have fallen about 100 basis points. You believe that the decline in rates is over, and you are interested in speculating...

Woodfield Company makes bed linens. During the first six months of 2012, Woodfield had the following production costs: Required: 1. Use the high-low method to compute the monthly fixed cost and the...

Arnold was employed during the first six months of the year and earned a $46,000 salary. During the next 6 months, he collected $4,800 of unemployment compensation, borrowed $6,000 (using his...

A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $10,000 per month....

A famous New York City hotel, Hotel Lux, is noted for its food, as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become the hotels head chef at $6,000 per...

11.2 Hypothetical Question with Sample Answer. A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef...

Hypothetical Question with Sample Answer A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to...

1. A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $10,000.00 per...

Hypothetical Question with Sample Answer. A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to...

12-2. A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $6,000 per...

If managers choose the nonfinancial measures upon which they will be evaluated, they may be biased in their choices. Explain and give an example of such a bias.

Create the following schedules, financial statements, and calculations A) Pro forma cost of goods manufactured B) Pro forma Cost of goods sold- both financial and variable cost basis C) Pro forma...

Rustoleum Corporation's Earnings Before Interest and Taxes ( EBIT ) is not enough to cover the interest expense due to its bondholders this year. Will Rustoleum Corporation be permitted by law to...

Teach for America, part II The study described in Exercise 28 also looked at scores in mathematics and language. Here are software outputs for the appropriate tests. Explain what they show....

John Warren wanted to buy a condominium in California. Hildegard Merrill was the agent for the seller. Because Warrens credit rating was poor, Merrill told him he needed a co- borrower to obtain a...

WHAT IF THE FACTS WERE DIFFERENT? Suppose that Henderson had fully disclosed the fact of his agency relationship and the identity of his principal. Would the result have been different? Why or why...

1. What conduct was at the center of the dispute in this case? 2. Who did the plaintiff allege was liable for this conduct? Which of these parties was the principal and which was the agent? 3. What...

What information does the payback period provide? Suppose Omni Consumer Products s CFO is evaluating a project with the following cash inflows. She does not know the project s initial cost; however,...

1. INTRODUCTION From what you leamed in Linux coorse, help Ahmed Soliman AL. Fahad company to solve their problem of sharing files among employees. There are many shared files between all employees,...

Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual...