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Sherman Act

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hAcKeR dUdE

Junior Member
What is the name of your state? Colorado
in past employment where this is of a concern

Many times before you start a new job you are required to sign a pre-employment contract that forces you into agreements before you start the job. Sometimes the employer will "conveniently" wait until 5 minutes before you start the job to have you sign the agreement which is a HIGH sign in itself.

The majority of these of contracts require that you agree NOT to develop anything in a certain area of technology for a period of 2 or 3 years after you quit, get laid off, or get fired. Some actually say not to develop a certain type of software, not to design a certain type of CPU, not to design medical equipment, or even not to design any procedures for drug manufacturing. This is just a few of the examples.

Whenever pre-employment contracts have you agree NOT to develop technology in a certain area for 2 or 3 years doesn't that restraint trade in that area by restraining development in that area so shouldn't they ALL be considered a violation of the Sherman Act???

Can an individual actually sign away their rights therefore allowing business to legally violate these laws???

http://www.usdoj.gov/atr/foia/divisionmanual/two.htm#a1

CHAPTER II

STATUTORY PROVISIONS AND GUIDELINES
OF THE ANTITRUST DIVISION 1

STATUTES ENFORCED BY THE ANTITRUST DIVISION

SHERMAN ANTITRUST ACT, 15 U.S.C. §§ 1-7
§ 1 Sherman Act, 15 U.S.C. § 1

Trusts, etc., in restraint of trade illegal; penalty

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

§ 2 Sherman Act, 15 U.S.C. § 2

Monopolizing trade a felony; penalty

Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

§ 3 Sherman Act, 15 U.S.C. § 3

Trusts in Territories or District of Columbia illegal; combination a felony

Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Columbia and any State or States or foreign nations, is declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

§ 4 Sherman Act, 15 U.S.C. § 4

Jurisdiction of courts; duty of United States attorneys; procedure

The several district courts of the United States are invested with jurisdiction to prevent and restrain violations of sections 1 to 7 of this title; and it shall be the duty of the several United States attorneys, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such violations. Such proceedings may be by way of petition setting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When the parties complained of shall have been duly notified of such petition the court shall proceed, as soon as may be, to the hearing and determination of the case; and pending such petition and before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises.

§ 5 Sherman Act, 15 U.S.C. § 5

Bringing in additional parties

Whenever it shall appear to the court before which any proceeding under section 4 of this title may be pending, that the ends of justice require that other parties should be brought before the court, the court may cause them to be summoned, whether they reside in the district in which the court is held or not; and subpoenas to that end may be served in any district by the marshal thereof.

§ 6 Sherman Act, 15 U.S.C. § 6

Forfeiture of property in transit

Any property owned under any contract or by any combination, or pursuant to any conspiracy (and being the subject thereof) mentioned in section 1 of this title, and being in the course of transportation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of property imported into the United States contrary to law.

§ 7 Sherman Act, 15 U.S.C. § 6a (Foreign Trade Antitrust Improvements Act of 1982)

Conduct involving trade or commerce with foreign nations

Sections 1 to 7 of this title shall not apply to conduct involving trade or commerce (other than import trade or import commerce) with foreign nations unless--

such conduct has a direct, substantial, and reasonably foreseeable effect--

A. on trade or commerce which is not trade or commerce with foreign nations, or on import trade or import commerce with foreign nations; or

B. on export trade or export commerce with foreign nations, of a person engaged in such trade or commerce in the United States; and

C. such effect gives rise to a claim under the provisions of sections 1 to 7 of this title, other than this section.

If sections 1 to 7 of this title apply to such conduct only because of the operation of paragraph (1) (B), then sections 1 to 7 of this title shall apply to such conduct only for injury to export business in the United States.

§ 8 Sherman Act, 15 U.S.C. § 7

"Person" or "persons" defined

The word "person", or "persons", wherever used in sections 1 to 7 of this title shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

:) JMHO, but I believe that each and every single supervisor and manger that requires you sign a NON compete contract which should also include the company owner or owners even if they claim ignorance should ALL be...

fined if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

:) JMHO but this is assuming that this is in fact an illegal activity that certainly appears to violate the Sherman Act.

This should start a very interesting debate and possibly many many legal questions especially by many of us who are the ones with the education and technical abilities to create and the corporate attorney who believes that it is honest to restrain the employee from creation in simular areas of technology. Anybody who has ever worked in the tech field for a rinky dink wanna bee tech company or a temporary employment agency in a larger company could have possibly seen one of those NON compete and NON creation clauses they include in those contracts.

Thanks for reading and answering any questions or leaving any comments. :)
 
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