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Q. My brother bought a “roach coach” business. He paid good money for three trucks, the routes and included a no-compete clause so that the company he bought the business from would not get back into the same business within five years from the sale. That business is now back in business, operating on the same routes that were sold to my brother only two years ago, and taking business away from my brother. What should he do? A. I believe your brother should sue that company. Usually non-competition clauses are enforceable as long as they are not overly restrictive. For example, not permitting the operators of that company to re-open in the same area the business was previously operating simply protects your brother's investment in purchasing the company. The enforcement of non-compete clauses in business-sale contracts depends upon the notion that part of what the buyer is paying for is the goodwill of the business (defined as the expectation of future public...
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