Gracie was a famous singer. Katie hired Gracie to sing every Friday and Saturday night at Katie’s bar in Detroit, Michigan. At the time of her contract, Gracie signed a non-competition agreement that stated:
I agree that for a period of 1 year after termination of my employment as a singer, I will not work as a singer, owner, or in any other capacity, at any bar located in the state of Michigan.
After six months, Katie fired Gracie, and Gracie took a new job as a singer at Lexie’s bar on Mackinac Island, Michigan. Katie sued Gracie, seeking to enforce the non-competition agreement.
For this assignment, assume that you are a Michigan judge that is evaluating Katie’s case. Write a couple of paragraphs that explain the applicable Michigan law and discuss why or why not you would enforce the agreement as written. (Hint: review the AJM Chapter 13 Materials…The applicable Michigan law is not discussed in the text. You need to discuss the three factors and why each is, or is not, reasonable, and then discuss what your options are as the judge).
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