California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 2 — Preservation and Regulation of CompetitionChapter 1 — Contracts in Restraint of TradeSection 16602.5

Any member may, upon or in anticipation of a dissolution of, or the termination of his or her interest in, a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction recognizing such a series), agree that he or she or it will not carry on a similar business within a specified geographic area where the limited liability company business has been transacted, so long as any other member of the limited liability company, or any person deriving title to the business or its goodwill from any such other member of the limited liability company, carries on a like business therein.

Notes

Allows a member, upon or in anticipation of dissolution of a limited liability company or termination of the member’s interest, to agree not to conduct a similar business in a specified area where the company operated. The restraint lasts only while another member or a person deriving the business or goodwill from another member carries on a like business there.

Use as reference

Lexinter.net | California Code, Business and Professions Code - BPC § 16602.5 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-2/chapter-1/section-16602-5

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