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Blog Bite: Can a Franchise Enforce a Restrictive Covenant Against Its Competitors?

In an interesting case for parties seeking to impose a geographic boundary on competitive operations, an Ontario Court has held that a franchisor was not entitled to enforce a restrictive covenant bec...

Proceed with Caution when Using a Zero-Hour Contract

In the United Kingdom, 'zero-hour' contracts seem to be popular among the youth due to the lack of job availability for the youth. In such zero-hour contracts, an employer does not have to guarantee w...

Non-Compete in an Asset Purchase Agreement is Enforceable, but It May Not Be in an Employment Agreement

Some jurisdictions, including California, permit only post-acquisition non-competes, in order to protect a purchaser’s interest in capitalizing on acquired goodwill for a limited period. If parties ...

Applicable Tax Laws must be Considered When Structuring an Asset Purchase Agreement

The APA should contain clear provisions allocating responsibility for taxes. Parties should also be familiar with the tax laws applicable to their transaction, particularly if it could be argued that ...

A Non-Compete Clause Must be Unambiguous

Restrictive covenants must be drafted carefully to give adequate protection to the purchaser, and purchasers should be able to show the connection between the price paid for the goodwill of the busine...
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