Noncompete Agreement Legal Issues

Prohibition of business strife (POBS) is an important legal system in nations to coordinate and balance the interests between the business parties, and to obstruct the unruly competition. There are broad and narrow ways to define it. However in my essay research, I define in the narrow way as to prohibit the competitive activities by persons who have specific civil legal relations with specific business.In essence, POBS is illicit competition. Based on the legal rules or agreements between related parties, the obligation of POBS is not to act. POBS is confined in time and space. The theoretical foundation is based on agent cost theory in economics and honest principle in legality. The systematical value is to protect business secret and employment right, and to promote the top management, so that the business interest is protected eventually.Compelling regulations should be made. However, relevant parties can make extra agreement exempt from all or part application of regulation and legal obligation. At present most nations have admitted the legality of promissory POBS. Based on the agreement, reasonable restriction in time, space and field should be put on obligators. Legislation on compensation and compensation standard are needed. It would not mean that the business activities would be invalid if the third party did not know the truth. There are three types of violating obligations of POBS, civil obligation, administrative obligation and criminal obligation. As there are some shortages in our legislation, examining and accomplishing of legislation on POBS are needed as well.Except the instruction and conclusion, the essay is divided into four parts.The first part is about the concept of POBS and characteristics of law. POBS is to prohibit the competitive activities by persons who have...