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  1. #1
    Join Date
    Jul 2013
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    2

    Default Non-Compete Agreements and Physical Business Location Closure or Sale

    My question involves business law in the state of: Arizona.

    I currently am employed by a health care organization. I have a non-compete clause in my contract. Currently, the contract says nothing with regards to office closure. All the tenets of the contract are tied to the one office location at which I am employed, and not to the parent organization, which has multiple offices in the city. The contract does have a provision for the sale of the office, contents and files. If the office closes and is not doing business for any period of time, and I am effectively laid-off, would that alter the terms of my non-compete clause? What if a sale were to occur after the fact? (The office space is defunct and the files are in storage) Would the provisions of the non-compete agreement still be enforceable?

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Non-Compete Agreements and Physical Business Location Closure or Sale

    Not having read your non-compete agreement, I can't say. When you showed it to an Arizona attorney, what did he tell you?

  3. #3
    Join Date
    Jul 2013
    Posts
    2

    Default Re: Non-Compete Agreements and Physical Business Location Closure or Sale

    His expertise is not in that area, and his brief review does not show any precedents for this particular situation...I have another meeting tomorrow. Thanks for your input.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Non-Compete Agreements and Physical Business Location Closure or Sale

    It would be unusual for a non-compete to survive the existence of a company, but it is not unheard of. There is not a law that guarantees any particular result; it will be based on the exact wording of this particular agreement.

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