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Non-compete agreement

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The scenario is a company which is hiring a software engineer to specially design new software for the company's use, and the company wants to enter into a non-compete agreement with the software engineer.

Need help in preparing a paper discussing any statutes and case laws in the US regarding non-compete agreements, and then draft a memorandum outlining your research. Include in your memorandum any issues that you feel need to be addressed before drafting this agreement.

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Solution Summary

The scenario is a company which is hiring a software engineer to specially design new software for the company's use, and the company wants to enter into a non-compete agreement with the software engineer.

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There are several issues that the company needs to consider regarding non-compete agreements in USA. Let us evaluate these issues one by one. The non-compete agreements should adhere to the rules and regulations of the state applicable to the organization. The laws pertaining to non-compete agreement varies from one state to another and thus, it is extremely important the organization drafting the agreement should have extensive knowledge of the laws and regulations pertaining to such agreement of the particular state.

First of all, the non-compete agreement should be "reasonable" in order to be considered valid. In other words, the non-compete agreement should display a genuine concern of the organization in terms ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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