Sherman Antitrust Act: Federal antitrust law that prohibits anticompetitive business practices and unreasonable restraints of trade. Must ensure non-compete provisions don't violate these restrictions.
Clayton Act: Federal law that supplements the Sherman Act, addressing specific anticompetitive practices. Relevant for ensuring the non-compete doesn't create monopolistic conditions.
Federal Trade Commission Act: Federal legislation empowering the FTC to prevent unfair methods of competition and deceptive practices. Currently considering rules to restrict non-compete agreements.
State Non-Compete Laws: Various state-specific regulations governing non-compete agreements. Varies significantly by jurisdiction - from California's general prohibition to other states' reasonable restrictions.
Common Law Reasonableness Doctrine: Legal principle requiring non-compete agreements to be reasonable in geographic scope, duration, and scope of prohibited activities to be enforceable.
Securities Exchange Act: Federal law governing securities transactions, relevant for share purchase aspects and required disclosures related to non-compete provisions.
State Securities Regulations: State-specific rules governing securities transactions and required disclosures in share purchase agreements.
FTC Proposed Rule on Non-Competes: Pending federal regulation that could potentially ban most non-compete agreements, must be monitored for impact on agreement enforceability.
Executive Order on Competition: Biden administration's order encouraging FTC to exercise its rulemaking authority to curtail the unfair use of non-compete clauses.
Legitimate Business Interest Requirement: Legal principle requiring non-compete restrictions to protect legitimate business interests such as trade secrets, confidential information, or customer relationships.
