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Protecting Purchased Goodwill: Sale-of-Business Restrictive Covenants Under National Scrutiny
Categories: Commercial Torts, Compliance, Contract Disputes, Non-Compete Agreements
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Restrictive covenants entered in connection with the sale of a business occupy a different place than ordinary employment noncompetes. In a sale transaction, the buyer is not simply trying to limit a former employee’s next job. The buyer is paying for goodwill, customer relationships, confidential information, and the seller’s promise not to immediately undermine the value of what was sold.

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