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Rule-of-Reason Analysis Business & Professions Code

Lewitt Hackman

Franchisor 101: Taking the Red Pill on Non-Competes

Lewitt Hackman on

Franchisors and franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a franchisor’s ability to...more

Epstein Becker & Green

California Supreme Court Applies Rule of Reason Test for “Business Only” Restrictive Covenants

Epstein Becker & Green on

In Ixchel Pharma, LLC v. Biogen, Inc., 20 Cal. Daily Op. Serv. 7729, __ P.3d __(August 3, 2020), the California Supreme Court made it easier for businesses to enforce restrictive covenants against other businesses. This...more

Orrick - Trade Secrets Group

The California Supreme Court Clarifies Section 16600 as Applied to Business Contracts and Holds That an Independently Wrongful Act...

The most powerful tool capable of invalidating competitive restraints under California law is Business and Professions Code section 16600. That statute states that “[e]very contract by which anyone is restrained from...more

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