Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 13

Robert McCart owned and operated an H R Block tax preparation franchise. When Robert became a district manager for H R Block, he was not allowed to continue operating a franchise. So, in accordance with company policy, he signed over his franchise to his wife June. June signed the new franchise agreement, which included a covenant not to compete for a two-year period withi a fifty-mile radius of the franchise territory should the H R Block franchise be terminated, transferred, or otherwise disposed of. June and Robert were both aware of the terms of this agreement, but June chose to terminate her franchise agreement anyway. Shortly thereafter, June sent out letters to H R Block customers, criticizing H R Block's fees and informing them that she and Robert would establish their own tax preparation services at the same address as the former franchise location. Each letter included a separate letter from Robert detailing the tax services to be offered by the McCart's new business. Should H R Block be able to obtain an injunction against June? Against Robert?