Chapter § 9-3 Checklist
| Jurisdiction | United States |
9-3 Checklist
A. Reason/Purpose of the Noncompete
1. Are the two companies truly in competition with one another? Why or why not? Does the agreement define competing business? If not in competition, then no further analysis needs to be undertaken.
2. Does the employer have a protectable interest?
3. Is the noncompete part of the sale of a business? If so, its reasonableness will be analyzed under a different standard review Henson Patriot Ltd. Co., LLC v. Medina, No. SA-14-CV-534-XR, 2014 U.S. Dist. LEXIS 127795 (W.D. Tex. Sept. 11, 2014) (in context of scale of business, a noncompete can be extended to third-party nonsignatories).
4. If goodwill is a protectable interest, ask:
a. Did employer provide a financial incentive for employee to create goodwill? What did...
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