DCS is a Delaware company with its main office in Ohio and operations in 13 states. It

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DCS is a Delaware company with its main office in Ohio and operations in 13 states. It cleans food processing plants, including a Tyson Foods plant in Dakota City, Nebraska.
Castillo and other employees signed noncompete agreements with DCS that stated: "For a period of one year following the date of termination of employment for any reason, I will not directly or indirectly engage in, or in any manner be concerned with or employed by any person, firm, or corporation in competition with [DCS] or engaged in providing contract cleaning services within a radius of one hundred (100) miles of any customer of [DCS].." Ohio law governed the contract.
When DCS lost its contract at the Tyson plant to a competitor, the competitor hired Castillo and other former DCS employees to do much the same work as before. DCS sued the employees for breach of contract.
The district court held for Castillo. DCS appealed.

1. The appeals court struck down the noncompete agreement. Does this mean all such agreements in Nebraska are unenforceable?
2. What difference might it have made had Ohio law applied?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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