Janet employs Jim in her hardware store, the only one located in the small town of Smith Creek, British Columbia. Customers include people from the surrounding rural area. and Janet had Jim sign an employment contract which included the following clause:

" If Jim leaves he will not work for or own any interest in another hardware store anywhere within a radius of 1,000 miles of Smith Creek for a period of 10 years"

Jim leaves and 6 years later opens a hardware business 850 miles from Smith Creek. Janet sues Jim.

1. What is the legal issue/question (2 marks)

2. What is the Rule of Law/Legal Test that applies (1 marks)

3. Discuss the legal test that should be applied to the facts of the case and state the likely outcome of the dispute between the parties. Give reasons for your answer, referring to the relevant legal test (2 marks)