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Business Transactions
- Product Labeling Law: ANSI, UL, CPSC - Some Thoughts for Product Importers and Distributors
- Buying a Car Wash In NY or NJ: Some Thoughts for Purchasers
- Buying a Gas Station or Car Wash you Need Landlord Consent - No Matter What the Lease Says
- $22 Million New York City Entrepreneur Fund Created for Starting Businesses in New York City
- Small Business Commercial Lease Agreements in New York: Limiting your Personal Guaranty may Not be Enough
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- "Must Use" Online Resources When Buying a Business or Franchise...
Posted on 1/13/2011
Library
Business Transactions
- CPSC Reporting Requirements: Knowing When to Report a Product Defect
- Three Things You Need to Remember About Your Product Warranties
- FTC's "Environmental" Marketing Rules: What Manufacturers, Distributors and Franchisors Need to Know
- Proposition 65: Information that Product Manufacturers and Distributors Need to Know
- Prop 65 Warning Requirements for Product Manufacturers and Distributors
The Importance of a "Non-Compete" when Buying a Business
Since the seller's individual shareholders/owners know the business better than anyone else and will possess relationships with customers and suppliers that you will depend on, it is critical that your purchase agreement and closing documents include "non-competition covenants" prohibiting the seller (including, the seller's individual shareholders) from establishing, managing or operating a business that will compete with you in the future. An acceptable non-competition covenant must precisely, clearly and fairly define a specified duration (during which the seller and the seller's shareholders are prohibited from competing) and territory (in the form of a set radius of "miles" from the location of the business that you are purchasing) prohibiting the seller and the seller's individual shareholders from competing with you or diverting your customers to a third party.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
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