While Adam is getting the purchase lined up, Stacy continues to work on financing options for future projects. She holds a meeting with several potential investors and she shares the concept of H2H, Inc. Before she begins, she asks them to sign a non-compete and non-disclosure agreement because H2H, Inc. has a unique method of making a profit off of the house flip market by using a special formula that she has created. The investors, including Ebineaser, sign the agreement. After the meeting, she develops several prospects. Ebineaser later thinks about the program and decides he can do it on his own and make more money. So, he takes to the streets and sets up competition with H2H, Inc. by forming Screws by Scrooge, Inc. Stacy later learns about this and is furious. She tells the group that they need to file a lawsuit against Ebineaser to protect their business. They file suit in a Texas state court, but Ebineaser is from Oklahoma. The meeting between Stacy and Ebineaser took place in Fort Worth. In the lawsuit, H2H relies upon a Texas statute designed to protect Texas businesses and Ebineaser claims that the Texas statute is invalid because it harms interstate commerce. After a jury trial, a verdict of 10-2 in favor of H2H is rendered.

Ebineaser comes and asks what he should say at this point. He believes he had ineffective counsel and that federal regulations were violated. What should he be told?

Answer rating: 100% (QA)

Ebineaser should be advised that if he believes he had ineffective counsel or that federal regulatio... View the full answer