Imagine that you are the judge hearing a Motion for Summary Judgment. The case before you concerns the former Vice-President of Marketing at May Department stores, who has recently been hired by Victoria's Secret. May Department stores has sued to enforce the non-competition agreement in which the VP agreed not to work for firms competing directly against May Department store. Both parties agree that both stores sell women's intimate apparel, but to different ages of women, and to different customer bases. They also agree that about 8% of May's business is women's intimate apparel, while 98% of Victoria's business is women's intimate apparel. What should you decide?
A)even though both companies sell women's intimate apparel, there is no meaningful or material competition between them
B)when both companies sell the same category of products, in determining whether the companies are in competition, the sale of the products is important, not the percentages of overall sales of the product
C)when both companies sell the same category of products, the fact that they both sell these products to women is important in determining whether the companies are in competition, not the ages of the women, nor the typical customer base

Question

Imagine that you are the judge hearing a Motion for Summary Judgment. The case before you concerns the former Vice-President of Marketing at May Department stores, who has recently been hired by Victoria's Secret.  May Department stores has sued to enforce the non-competition agreement in which the VP agreed not to work for firms competing directly against May Department store. Both parties agree that both stores sell women's intimate apparel, but to different ages of women, and to different customer bases. They also agree that about 8% of May's business is women's intimate apparel, while 98% of Victoria's business is women's intimate apparel. What should you decide?  ​
A)even though both companies sell women's intimate apparel, there is no meaningful or material competition between them
B)when both companies sell the same category of products,  in determining whether the companies are in competition, the sale of the products is important, not the percentages of overall sales of the product
C)when both companies sell the same category of products, the fact that they both sell these products to women is important in determining whether the companies are in competition, not the ages of the women, nor the typical customer base

Quizplus · Accepted Answer

The key factor in determining whether the non-competition agreement should be enforced is whether there is meaningful or material competition between May Department stores and Victoria's Secret. Given that both stores target different age groups and customer bases, and considering the significant difference in the percentage of business each store dedicates to women's intimate apparel (8% for May vs. 98% for Victoria's Secret), it can be concluded that there is no meaningful or material competition between them in this context.

Imagine That You Are the Judge Hearing a Motion for Summary