This is a true story (although the names have been changed). Bob Smith was employed by Acme Hospital & Health Care Services as an insurance sales account executive selling group health and life insurance products. Bob developed numerous customer accounts for Acme. Recognizing that its most valuable asset was its employees’ relationships with its customers, Acme required Smith to sign an agreement “not to compete, directly or indirectly, with any existing or future customer of the company.” Acme had protected itself from disloyal employees, right? Wrong.
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