non compete, tn #2

[mysticdream]

I was wondering if a non compete is still binding if the company goes out of business at any point.

previous post:
--------------------------------------------------------------------------------

What is the name of your state? tennessee
I was wondering if you could tell me if a non-compete agreement is legal? My
employers made me sign one that basically will not allow me to work in my
field within a 25-mile radius of my home for a period of 1 year(I live a
mile from my work). I have been doing my career for 6 years and did not recieve any specialized training from this company.

Please respond as soon as possible or let me know who I can contact to find
the answer.

Thank you in advance for your time and assistance,
Jennifer
---------------------------------------------------------------------------------------

 

[eerelations]

The purpose of a non-compete agreement is to prevent a person from competing with a company (by starting a business or working for another company in direct competition with the company) for a specified period of time. If the company goes out of business, then there's nothing to compete with, ergo the non-compete agreement is invalid.

While the foregoing is perfectly logical to me, I've noticed that the law isn't always as logical as I am. An attorney would be able to give you an accurate (though not necessarily logical) answer to your question.