BONUS QUESTION B. Pierre decides to sell his hot dog restaurantin Mt. Pleasant. The dog and bun shop have been wildly successfuldue to Pierre’s secret recipe for his special sauce.
The buyer, Brian, pays a premium for the business. The agreementalso provides that Pierre CANNOT open a competing business for 2years within a 25-mile radius of the store’s current location onMichigan Avenue in Mt. Pleasant that uses Pierre’s secretsauce.
YOU GUESSED IT. Pierre opens a new restaurant 6 months later.The new restaurant does NOT sell dogs or use Pierre’s secret saucein any of the food products that the restaurant sells. The newbusiness is primarily a donut shop with various exotic coffees. Itis called the “ROUND MOUND. AND DRINKS.”
In its advertising, the store states, “Come to the Round Moundand eat hearty – You too can be a round mound, just like Pierre.”The new business is also wildly successful, and Pierre is making$$$ hand over fist.
Brian now sues Pierre and wants the store closed. Please addressBrian’s rights under the anti-trust statutes, a claim for falseadvertising, and the enforcement of the non-compete agreement.
