Case Study: Competition Clause Not Overly Restrictive
Nysha Moore
Competition Clause Not Overly Restrictive
1. Discuss why hospitals place noncompetitive clauses in their contracts.
A contract is a special kind of voluntary agreement, either written or oral, that involves legally binding obligations between two or more parties (Pozgar & Santucci, 2015, p. 126, para. 1). A contract protects each party with the legal means of enforcing a right or redressing a wrong if another party does not perform his or her obligations following to the terms of the contract.
Hospitals that implement noncompetitive clauses in their contracts, do so to protect their organization if a current doctor decides to leave and practice elsewhere. The clause states the restrictions of the physician’s practices, including the time period and location. This particular contract restricted Dr. Dominy from performing emergency medical services in only MHM in Bainbridge, Georgia and from having an ownership or financial interest in an entity contracting to provide emergency medical services to that one hospital (Pozgar & …show more content…
Neither party attempted to terminate the contract and Dr. Dominy was also paid for his work at MHM. Dr. Dominy was also granted other benefits from NES, which were listed in the arrangements of the contract until its contract was terminated by the hospital with NES. The contract was also not considered overly restrictive because the time and areal outcome of the contract prevented Dr. Dominy from becoming a big competitor of the NES Company immediately after his termination of contract with MHM (Pozgar & Santucci, 2015, p. 137, para. 7). I agree with the court’s decision because the noncompetitive clause protected the lawful concerns of the employer, it did not institute any unreasonable adversity on the employee, and the contract was not conflicting of the public’s
Competition Clause Not Overly Restrictive
1. Discuss why hospitals place noncompetitive clauses in their contracts.
A contract is a special kind of voluntary agreement, either written or oral, that involves legally binding obligations between two or more parties (Pozgar & Santucci, 2015, p. 126, para. 1). A contract protects each party with the legal means of enforcing a right or redressing a wrong if another party does not perform his or her obligations following to the terms of the contract.
Hospitals that implement noncompetitive clauses in their contracts, do so to protect their organization if a current doctor decides to leave and practice elsewhere. The clause states the restrictions of the physician’s practices, including the time period and location. This particular contract restricted Dr. Dominy from performing emergency medical services in only MHM in Bainbridge, Georgia and from having an ownership or financial interest in an entity contracting to provide emergency medical services to that one hospital (Pozgar & …show more content…
Neither party attempted to terminate the contract and Dr. Dominy was also paid for his work at MHM. Dr. Dominy was also granted other benefits from NES, which were listed in the arrangements of the contract until its contract was terminated by the hospital with NES. The contract was also not considered overly restrictive because the time and areal outcome of the contract prevented Dr. Dominy from becoming a big competitor of the NES Company immediately after his termination of contract with MHM (Pozgar & Santucci, 2015, p. 137, para. 7). I agree with the court’s decision because the noncompetitive clause protected the lawful concerns of the employer, it did not institute any unreasonable adversity on the employee, and the contract was not conflicting of the public’s