Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 3

Kethan's employment contract with MedEcon contained a noncompetitive clause providing he could not work for a competitor for two years after leaving. It also had geographic restrictions. Kethan worked for several years and established a strong relationship with MedEcon's customers. MHA bought MedEcon's assets, including Kethan's employment contract. A month later Kethan gave notice of his resignation. Soon thereafter, a main customer of MHA quit dealing with it, and Kethan went to work for it. MHA argued it could enforce the noncompetitive clause because the contract had been assigned to it. Is it correct? Explain.