Section 16600

Any person who sells the goodwill of a business or any owner of a business entity selling or otherwise disposing of all of his or her.

Section 16600. California business and professions code bpc ca bus prof section 16600. Section 16600 states that any restraint is void and that section represents a strong public policy of the state which should not be diluted by judicial fiat 11 thus there can be no judicial exceptions to the strong public policy of section 16600. Contracts in restraint of trade 16600 16607 chapter 1 added by stats.

Section 16600 as applied to business contracts. To avoid challenges under section 16600 businesses should be prepared to articulate pro competitive benefits of agreements that might limit some transactions including justifying the agreement. Chapter 1 contracts in restraint of trade.

Part 2 preservation and regulation of competition. In answering the second question the court started by observing that the parties did not appear to dispute that section 16600 applies to business contracts or that none of the statutory exceptions to section 16600 e g sale of a business or dissolution of a partnership or llc applied to. Except as provided in this chapter every contract by which anyone is restrained from engaging in a lawful profession trade or business of any kind is to that extent void.

Except as provided in this chapter every contract by which anyone is restrained from engaging in a lawful profession trade or business of any kind is to that extent void. Division 7 general business regulations. Read the code on findlaw.