Are noncompete agreements enforceable?
This is a tricky area of law. For example, the State of California specifically holds noncompete agreements to be unenforceable. Other states uphold noncompete agreements if their terms are reasonable. Most courts frown on noncompete agreements, and look for ways to not uphold them on the basis that they interfere with an individual s ability to earn a livelihood. Network marketing companies do have the right if they so choose (although few do) to ask their distributors to have an exclusive relationship with them when they are under contract with the company. However, after termination, the power of companies to is very limited unless distributors are using confidential or proprietary information. On the other hand, courts have upheld clauses which prohibit distributors from returning to their old companies to interfere with contractual relationships, or solicit or raid distributors from those companies.
