Legal Question in Business Law in Rhode Island

noncompete

Hi.

I was forced to sign a non-compete agreement in April of 2001 against my will. I signed it to maintain my employment with the company that I was working for. When I told my boss at the time that I had reservations about signing the agreement he told me that it is just a formality, so I signed it. I left the company four and a half months ago and I would now like to start my own company. It is in the same industry, but I will be selling more upscale items and gift items that my previous employer does not sell. I will be carrying different vendors as well and I feel that I will be targeting a different clientele. They are a big chain and I am looking to open a very small boutique that is just 525 square feet. I sent my previous employer an email asking them if they would be so kind as to release me from the agreement. The non-compete agreement that I signed is valid until March of 2005 (one year from my termination date). My ex-boss who made me sign the agreement told me in an email a couple of times that it is not a problem at all if I start my own business. He told me this prior to me receiving a call from the corporate office. He told me that the non-compete does not apply in my case and wished me luck in the ema


Asked on 8/16/04, 2:20 am

1 Answer from Attorneys
Patricia Joyce Law Office of Patricia M. Joyce

Re: noncompete

Under Rhode Island law, a non-compete agreement must be "reasonable" in terms of "length of time" and geography. Such agreements are strictly scrutinized so that one is not unreasonably prevented from making a living in their occupation.

More information would be needed to provide further information in your particular situation because "reasonable" depends on an examination of all the facts & circumstances in a particular matter. However, the information you did provide regarding written correspondence from your prior "boss" could be a critical factor in your situation.

I hope this information is helpful to you.

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Answered on 8/16/04, 9:26 am


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