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(Solved): CASE STUDY: BREWING LEGAL TENSIONS BEAN EUPHORIAS RESTRAINT OF TRADE DILEMMA In the bustling ci ...



CASE STUDY: BREWING LEGAL TENSIONS – BEAN EUPHORIAS RESTRAINT OF TRADE DILEMMA In the bustling city of Johannesburg, South Africa, an emerging coffee empire known as "Bean Euphoria" has taken the local caffeine scene by storm. The success of this trendy coffee chain can be attributed to its unique blends, inviting atmosphere, and charismatic founder, Ms. Samantha Mkhize. However, the company's rapid expansion has led to some unexpected legal challenges, particularly regarding Restraint of Trade (ROT) clauses in employment contracts. Samantha Mkhize, the visionary behind Bean Euphoria, hires three key employees to manage various aspects of the business: A. Barista Extraordinaire - Siphiwe Ngcobo: Siphiwe, renowned for his expertise in crafting the perfect cup of coffee, signs a contract with Bean Euphoria that includes a ROT clause restricting him from working in the coffee industry within a 10-kilometer radius of any Bean Euphoria location for a period of two years post-employment. B. Marketing Maestro - Nomvula Vilakazi: Nomvula, responsible for the successful marketing campaigns that fueled Bean Euphoria's growth, agrees to a ROT clause preventing her from engaging in any marketing activities for a competing coffee chain in South Africa for one year after leaving Bean Euphoria. C. Operational Overlord - Thabo Moloi: Thabo, the operational mastermind behind the seamless running of Bean Euphoria stores, signs a ROT clause restricting him from managing or operating any coffee-related business in the entire Gauteng province for a period of 24 months after his employment ends. 1.1 Examine the factors that determine the legality and enforceability of restraint of trade clauses in employment contracts. Consider relevant South African legal principles and laws and cite any relevant case law in your response. (10) 1.2



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