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I'm not in CA but there does appear to be cases where they can be enforced per http://en.wikipedia.org/wiki/Non-compete_clause#Exceptions_-_valid_non-compete_ag
by johnward 12y ago
I'm not in CA but there does appear to be cases where they can be enforced per http://en.wikipedia.org/wiki/Non-compete_clause#Exceptions_-_valid_non-compete_agreements_in_California http://en.wikipedia.org/wiki/Non-compete_clause#Exceptions_-...
"Non-compete agreements are automatically void as a matter of law in California, except for a small set of specific situations expressly authorized by statute. They were outlawed by the original California Civil Code in 1872."
"here are limited situations where a reasonable non-compete agreement may be valid in California.
(1)Where the owner of a business is selling the entire business, or is selling the goodwill in the business, the seller may be bound by a non-compete clause.
(2)When there is a dissolution or disassociation of a partnership.
(3)Where there is a dissolution of a limited liability company."
So #1 says "you cannot sell your business with the intention of competing in the same space after the sale". Which seems reasonable.
- couradical 12y agoRealistically, these are all the same thing in different manners - dissolving a business, and starting another immediately competing in the same space, which seems shockingly sensible to me.