Dr. Delgado, a pediatrician entered into an employment agreement with the All Children’s Hospital

Select two of the scenarios listed below and explain the best solution for each. Include comments related to any ethical issues that arise.

Scenario 1—Contracts

Dr. Delgado, a pediatrician entered into an employment agreement with the All Children’s Hospital. According to the contract, after termination of her employment for any reason, Delgado could not compete with the hospital by working within a 100-mile radius of it for two years. One year after resigning from the hospital, Dr. Delgado opened her own pediatric practice within 75 miles of the hospital and began seeing patients. All Children’s Hospital filed a breach-of-contract lawsuit against her.

Provide potential arguments for both parties regarding the breach of the non-compete contract lawsuit. Support your responses with appropriate cases, laws and other relevant examples by using at least one scholarly source from the SUO Library in addition to your textbook for each scenario.
Scenario 2—Intellectual Property

Professor Klug teaches tort law for Las Vegas School of Law, a for-profit law school. Several times during the semester, the professor made copies of various articles and distributed them to his students. Unbeknownst to Klug, the daughter of one of the article’s authors was a student in his class. The daughter told her father about Klug’s copying, which took place without the father’s or publisher’s permission. The father sues Klug for copyright infringement. Klug claims protection under the fair use doctrine.

Provide arguments for each party. Determine which party will win. Provide support for the arguments and the final answer with cases or scholarly articles from the South University Online Library.
Scenario 3—Antitrust

Mitchell Dawson and three of his friends purchased nonrefundable tickets from Live Nation Entertainment to attend a concert at the Straz Center in Tampa. The front of the ticket included a printed statement that the price included a $10 parking fee. Dawson and his friends hired an Uber driver to take them to the concert.

Frustrated at being charged for parking that he did not need, Dawson filed a lawsuit in federal district court against Live Nation arguing that the bundled parking fee was unfair since consumers were forced to pay it in order to attend the concert. He asserted the tying arrangement violated Section 1 of the Sherman Act.

Present the arguments that both parties to the lawsuit would make.
Select a winner and support your choice.
Scenario 4—Consumer Protection

On February 1, a salesperson for Metropolitan Life Insurance met with the Drakes at their home. The Drakes lived in a 55+ retirement community with a homeowners association that prohibited door-to-door sales. After facing a persuasive sales pitch about the importance of providing for the surviving spouse and their kids and grandkids, the Drakes signed a contract to purchase a life insurance policy for a total of $3000 per year. A down payment of $100 was required, with the remainder of the cost to be paid in monthly payments. Two days later, the Drakes had second thoughts about purchasing the insurance. Mr. Drake contacted the insurance company and stated that they had decided to cancel the contract. The insurance company said it would be impossible to cancel the first year and the Drakes would be in breach of contract if they did not make all of the payments.

Did Metropolitan Life Insurance violate any consumer laws by not allowing the Drakes to rescind their contract? Explain.

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Scenario 1: Non-Compete Clause Breach (Dr. Delgado)

Potential Arguments for All Children’s Hospital:

  • Contractual Violation: The hospital can argue that Dr. Delgado clearly breached the non-compete clause in the employment agreement by opening a competing practice within the restricted radius and timeframe. They can emphasize the importance of upholding contractual obligations to protect the hospital’s legitimate business interests, such as patient retention, goodwill, and investment in training Dr. Delgado.
  • Harm to Hospital: The hospital can argue that Dr. Delgado’s new practice siphons patients and revenue from the hospital, potentially impacting its ability to provide essential services to the community. They can present evidence of patient loss, financial losses, and reputational damage due to Dr. Delgado’s actions

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  • Reasonableness of Clause: The hospital can argue that the non-compete clause is reasonable in scope and duration, protecting its legitimate interests without unduly restricting Dr. Delgado’s career prospects. They can compare the clause to industry standards and demonstrate its geographical and temporal limitations.

Potential Arguments for Dr. Delgado:

  • Unreasonable Restriction: Dr. Delgado can argue that the non-compete clause is unreasonable and overly broad, impeding her ability to practice medicine and earn a living. She can highlight the limited geographical scope (100 miles) and lengthy duration (two years), potentially causing undue hardship and limiting patient access to care.
  • Changed Circumstances: Dr. Delgado can argue that unforeseen circumstances have changed the landscape since the contract was signed, rendering the clause unenforceable. She can present evidence of changes in the local healthcare market, patient demographics, or her personal circumstances justifying a deviation from the clause.
  • Public Interest: Dr. Delgado can argue that enforcing the non-compete clause would harm the public interest by limiting patient access to pediatric care in the area. She can demonstrate the potential shortage of qualified pediatricians and emphasize her commitment to serving the community, even if it means competing with the hospital.

Ethical Considerations:

  • Balance of Fairness: Balancing the hospital’s legitimate business interests with Dr. Delgado’s right to practice medicine ethically is crucial.
  • Patient Welfare: Ensuring access to quality healthcare for the community should be a top priority in any legal decision.
  • Transparency and Communication: Open communication and clear contractual terms are essential to avoid disputes and protect both parties’ rights.

Relevant Sources:

  • Restatement (Second) of Contracts § 187 (American Law Institute 1981): This section addresses the enforceability of restrictive covenants, emphasizing the need for reasonableness and consideration of potential harm to the public interest.
  • American Medical Association Code of Medical Ethics Opinion 9.10.2: This opinion encourages physicians to balance their own interests with the needs of patients and the public when entering into restrictive covenants.
  • Case Law: Courts in different jurisdictions have applied various tests to determine the enforceability of non-compete clauses in healthcare settings. Some relevant cases include: Karsten v. Blue Cross & Blue Shield of Florida, Inc. (11th Cir. 1999) and Health Care Corp. of Am. v. Bachman (Tenn. 1992).

Recommendation: The outcome of this case will depend on the specific details of the contract, the local legal landscape, and the judge’s interpretation of the clause’s reasonableness and potential harm to the public interest. Seeking legal counsel and considering mediation to reach a mutually agreeable solution are crucial steps in this scenario.

 

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