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Covenants Not To Compete

Covenants not to compete are not the favorites of courts. Enforcement of such restrictions reduces competition; accordingly, the analysis requires the weighing of various factors and the cases are decided on in a fact-sensitive manner. In Aamco Transmissions v. Romano, the district court elegantly reviewed the specific facts of the case, modified the contractual covenant not to compete, and concluded that the former franchisee did not violate the modified covenant.

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Covenants not to compete are not the favorites of courts. Enforcement of such restrictions reduces competition; accordingly, the analysis requires the weighing of various factors and the cases are decided on in a fact-sensitive manner. In Aamco Transmissions v. Romano, 2016 U.S. Dist. LEXIS 24921 (March 1, 2016) (Brody, J), the district court elegantly reviewed the specific facts of the case, modified the contractual covenant not to compete, and concluded that the former franchisee did not violate the modified covenant.

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