Arkansas Clauses Relating to Venture Opportunities, competition
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The Arkansas courts have made it abundantly clear that restrictive non-compete agreements (or ?covenants?) are enforceable if the terms are reasonable and necessary to protect the employer's business interests.
compete clause is a contractual term between an employer and a worker that blocks the worker from working for a competing employer, or starting a competing business, typically within a certain geographic area and period of time after the worker's employment ends.
The Arkansas courts have made it abundantly clear that restrictive non-compete agreements (or ?covenants?) are enforceable if the terms are reasonable and necessary to protect the employer's business interests.
Code § 4-75-101. Covenant not to compete agreements: Unfair Practices ? General Provisions ? Arkansas. Provides a covenant not to compete agreement is enforceable if the agreement is ancillary to an employment relationship or part of an otherwise enforceable employment agreement or contractt.
Act 921 embraces the ?blue pencil? rule, which allows for courts to reform an otherwise unreasonable or overbroad non-compete provision. This is a significant departure from prior Arkansas law.
While similar to the blue pencil doctrine (which is frequently used as a catch-all term to apply to any modification of a restrictive covenant), the purple pencil doctrine differs in that it allows rewriting non-compete agreements to make them enforceable while the blue pencil doctrine, when using the term in its ...
Also known as blue-penciling, blue pencil, or blue-pencil. In the US, blue penciling commonly refers to the practice of modifying, narrowing, or deleting an unenforceable contract or contractual provision so that the remainder of the agreement is enforceable.
The blue pencil doctrine gives courts the authority to strike unreasonable clauses from a non-compete agreement, leaving the rest to be enforced, or actually to modify the agreement to reflect the terms that the parties originally could have and probably should have agreed to.