What are the requirements for a valid covenant not to compete and discuss whether or not this particular covenant is enforceable

Ginger is a Certified Public Accountant in practice by herself in Centerville. She merges her practice with that of Heap, Big, and Co. Part of the merger agreement states that if Ginger should ever leave Heap, Big, and Co., she promises not to practice public accounting in Centerville for a period of five years after leaving.

Los Angeles, CA -

Attorney Answers (4)

Marilynn Mika Spencer

Marilynn Mika Spencer

Employment / Labor Attorney - San Diego, CA

How can you learn if other people do your homework for you? Working in the profession isn't just something that happens when you have a degree or license. You have to actually know what you are doing, too.

*** All legal actions have time limits, called statutes of limitation. If you miss the deadline for filing your... more
Michael Charles Doland

Michael Charles Doland

Business Attorney - Los Angeles, CA

Please take you homework assignment elsewhere.
Avvo is for real legal situtations for real people.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
Michael Robert Kirschbaum

Michael Robert Kirschbaum

Employment / Labor Attorney - Irvine, CA

This sounds suspiciously like a law school exam question. We don't do student's work for them.

Instead of answering your question, I suggest you start your research at Cal. Business and Professions Code, section 16601.

They say you get what you pay for, and this response is free, so take it for what it is worth. This is my opinion... more
Craig Trent Byrnes

Craig Trent Byrnes

Employment / Labor Attorney - Manhattan Beach, CA

As a general rule, covenants not to compete are illegal in California. California rejects the so-called "rule of reasonableness" that other states follow.

One exception is the sale of goodwill of a business. For example, a partner in a company who owns an equity interest, and subsequently sells her interest, could be subject to a reasonable covenant not to compete.

Covenants not to compete must be reasonable in time and geographical scope. The cases will generally uphold otherwise valid covenants that extend over a single city. Five years is at the outside margin of what I've seen courts uphold as a valid time restriction, and could go either way.

Good luck with your legal issues.

Craig T. Byrnes

Disclaimer: Please be aware that I am not offering legal advice, nor forming an attorney-client relationship with... more

Related Topics

Non-compete agreements and employees

A non-compete agreement places restrictions on where and when employees can switch jobs to work for rival companies or to work in related industries.

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