Question: Beth, a Web developer, has worked for ABC Cosmetics, Inc. (ABC) for two years in their New York location. ABC has corporate offices in the

Beth, a Web developer, has worked for ABC Cosmetics, Inc. (ABC) for two years in their New York location. ABC has corporate offices in the states of New York and California. When she started employment at ABC she signed several forms, including an acknowledgement of receipt of an employee handbook. The employee handbook has a prominent disclaimer in the introduction and in large text on its own page of the handbook. Additionally, disclaimer language is included in the acknowledgement. She also signed a non-disclosure agreement (NDA) and a non-competition agreement. The relevant language from these agreements are included below. Non-competition Agreement During the period of my employment by ABC Cosmetics, Inc. (ABC), I shall not, directly or indirectly, alone or as a consultant, partner, officer, director, employee, joint venturer, lender or stockholder of any entity, engage in any business or activity that is in competition with the products being developed or sold by ABC in the continental United States of America for one year following the termination of my employment, regardless of the reasons for my termination. Non-disclosure Agreement I shall not at any time, whether during or after the termination of my employment, reveal to any person or entity any Confidential Information except to employees of ABC Cosmetics, Inc. who need to know such Confidential Information for the purposes of their employment, or as otherwise authorized by ABC in writing. A start-up, XYZ Makeup, LLC (XYZ), approaches Beth and informs her that if she moves to California they can offer her a management position which will pay two times the amount she is earning at ABC. ABC asks Beth if she has been freelancing and she denies it. ABC terminates Beth because she has been freelancing even though she denies it. They also file a Temporary Restraining Order (TRO) preventing Beth from accepting the position at XYZ. Beth moves to California but XYZ rescinds the job offer because of the TRO. Beth has filed lawsuits against ABC and XYZ for breach of contract. Use IRAC to draft your answers to the following questions. 1. Should ABC's TRO be granted? Does your answer change depending on which state ABC filed? 2. Does Beth have a valid claim against ABC for breach of contract? 3. Does Beth have a valid claim against XYZ for breach of contract?

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