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Under what circumstances can a noncompete agreement be unenforceable?

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granny54 | Student, College Freshman | (Level 1) Valedictorian

Posted August 8, 2013 at 8:18 AM via web

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Under what circumstances can a noncompete agreement be unenforceable?

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted August 8, 2013 at 9:53 PM (Answer #1)

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In the United States, unenforceability is determined if any or all parts of a noncompete clause or contract is found to be "an unfair restraint on trade" (West's Encyclopedia of American Law).

Some states use a "blue pencil doctrine of severability" whereby individual lines of a non-compete clause or contract are subject to rules of enforceability. These states may thus determine individuals items in a contract to be unenforceable. Other states find that if any part is unenforceable, then the whole noncompete clause or contract is unenforceable.

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