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California Consumers Co. purchased from S.L.Coker an ice distributing business in the city of Santa Monica. In purchase agreement, Coker agreed that he wouldn’t engage in the business of selling or distributing ice either directly or indirectly in Santa Monica, so long as purchasers or any later purchasers remained in business. Imperial Ice Co. acquired the ice distributing business from the California Consumers. Coker subsequently began selling ice in same territory. The ice was supplied to him by the company owned by the Rosner and Matheson on extremely attractive terms, since they wanted to break in the territory. Imperial Ice sued to obtain the injunction to restrain Coker from violating his original contract. Did Rosner persuade Coker to violate his contract and were they therefore accountable for the tort of wrongful interference with contractual relations? Discuss.

Operation Management, Management Studies

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