Identification Of Efftect Of Non-competition Agreement, Via Hongda Cor V. Zhao

The sound development of the market economy is built on the fair competition order which needs a perfect system security. As one of the systems maintaining fair competition order of the market economy, non-competition system pays equal attention to the interests of both employers and employees, and the NCA’s effect is the key to resolve the dispute of non-competition. As lacking of a perfect non-competition system and as our legislation and judicial value is regional different, starting from the NCA, with the study of China’s existing legal system of non-competition and reference of foreign related provisions, this paper tries to analyze the necessity of NCA and the rationality of the factors which may impact on the effect of the NCA, such as subjects, scopes, economic compensations and terms, and puts forward the standard of identifying NCA’s effect.This paper is divided into four parts.The first part is the introduction of basic facts of Hongda Cor v. Zhao, combing of judge opinions and arrangement of controversial points. These works will draw forth the factors related to the identification of NCA’s effect, which is the key to solve the disputes of non-competition.The second part mainly expounds the general theory of the non-competition system, which includes the research about the its origin and the analysis of its value function.We try to illustrate the importance of non-competition system through the analysis of the value of non-competition, and indicate the direction of the identification of NCA’s effect.The third part is about the standard of identifying NCA’s effect. We analyze the related factors of the NCA’s effect based on the value of non-competition system, refer to domestic and foreign relevant legislation and judicial situation, demonstrate from aspects of NCA’s necessity and the rationality of subjects, scopes,economic compensations and terms, and put forward the standard of identifying NCA’s effect.The fourth part is the analysis of the identification of NCA’s effect in the Honda Cor v. Zhao case. In this part, I will put forward my own opinions of the judgment and the reasons for this case, according to the standards put forward before.