Business Law 12th Edition by Roger LeRoy Miller ,Frank Cross

Exercise 13

Covenant Not to Compete Gary Forsee was an executive officer with responsibility for the U.S. operations of BellSouth Corp., a company providing global telecommunications services. Under a covenant not to compete, Forsee agreed that for a period of eighteen months after termination from employment, he would not "provide services … in competition with [BellSouth] … to any person or entity which provides products or services identical or similar to products and services provided by [BellSouth] … within the territory." Territory was defined to include the geographic area in which Forsee provided services to BellSouth. The services included "management, strategic planning, business planning, administration, or other participation in or providing advice with respect to the communications services business." Forsee announced his intent to resign and accept a position as chief executive officer of Sprint Corp., a competitor of BellSouth. BellSouth filed a suit in a Georgia state court against Forsee, claiming, in part, that his acceptance of employment with Sprint would violate the covenant not to compete. Is the covenant legal? Should it be enforced? Why or why not? [ BellSouth Corp. v. Forsee, 265 Ga.App. 589, 595 S.E.2d 99 (2004)]