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Study on the Judgment of the Rationality of Non-Competition Agreements

Author: ChiZuoFeng
Tutor: HuYue
School: Northeast Normal University
Course: Civil and Commercial Law
Keywords: Non-competition Agreements Determination of Rationality Confidential Business Information
CLC: D922.5
Type: Master's thesis
Year: 2010
Downloads: 118
Quote: 1
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Abstract

With the development of the talent flow under the economical globalization, there comes a potential threat from the employee to the employer after postemployment. If the former employee continues to engage working in an enterprise which is in a closely related category and has direct competition with the former one, it is likely to endanger the confidential business information of the enterprise and violate the regular market order. By enforcing the non-competition system we protect enterprises from unfair competition in a disordered market, but at the same time restrict the employees from the freedom of obtaining a career.This paper starts from typical cases which show great conflicts and arguments on the topic of non-competition agreement. By from doing the analysis of the theoretical basis and legal value to comparison of the reality of non-competition agreements (NCA) in the western world, it provides detailed reference standards and related legislative proposal for the rationality of NCA under the domestic Chinese judicial systemIn part one, the author tries to bring forward the definition and theory evidence by introducing some of the famous cases arisen recently and showcasing the issue that there is a legislative authority deletion in rationality of NCA in domestic environment. In part two, the author takes an intensive research on the jurisprudent foundations related to the rationality of NCA, from the nature of the contractual relationship to principle of reasonable restrictions. In part three, through the exploration and analysis of NCA in Anglo-American Legal System countries and Continental Legal System countries as USA, UK, Germany and Switzerland, the author summarizes consistencies and advantage of these countries which can be worth considering in China. In part four, the author put forward further considerations on the judicial practice when tort of non-competition obligations occurs and concludes with some suggestions that law makers can follow in order to build a stronger legal framework around non-competition law.

Study on the Judgment of the Rationality of Non-Competition Agreements

Abstract

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