California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 2 — Preservation and Regulation of CompetitionChapter 1 — Contracts in Restraint of TradeSection 16602
(a) Any partner may, upon or in anticipation of any of the circumstances described in subdivision (b), agree that he or she will not carry on a similar business within a specified geographic area where the partnership business has been transacted, so long as any other member of the partnership, or any person deriving title to the business or its goodwill from any such other member of the partnership, carries on a like business therein.
(b) Subdivision (a) applies to either of the following circumstances:
(1) A dissolution of the partnership.
(2) Dissociation of the partner from the partnership.
Notes
Allows a partner, upon or in anticipation of partnership dissolution or the partner’s dissociation, to agree not to carry on a similar business within a specified geographic area where the partnership operated. The restriction is permitted only while another partnership member, or a person deriving title to 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 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-2/chapter-1/section-16602