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Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson. Leigh rents linens and industrial uniforms to commercial customers; the soiled linens and uniforms are picked up at regular intervals by the route drivers and replaced with clean ones.

Every employee is assigned a list of customers whom she services. The contract of employment stated that in consideration of being employed, on termination of his employment, Close would not ‘‘directly or indirectly engage in the linen supply business or any competitive business within Central City, Illinois, for a period of one year from the date when his employment under this contract ceases.’’

On May 10 of the following year, Close’s employment was terminated by Leigh for valid reasons. Close then accepted employment with Ajax Linen Service, a direct competitor of Leigh in Central City.

He began soliciting former customers he had called on for Leigh and obtained some of them as customers for Ajax. Will Leigh be able to enforce the provisions of the contract?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M92187692

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