Non-competition rules for lawyers, which statement is correct?

Non-competition rules for lawyers, which statement is correct?

• A. Not allowed.
• B. Allowed for retirement benefits.
• C. Allowed for sale of practice.
• D. Both retirement benefits and sale of practice are allowed.

Answer: (D)

Non-compete restraints for lawyers are allowed only in two narrow situations. After termination, a lawyer’s right to practice cannot be restricted by a general non-compete, but restrictions are permissible if they are connected to the sale of a law practice or to retirement benefits. That makes the best choice the one stating that both retirement benefits and sale of practice restrictions are allowed. In the sale-of-practice scenario, the buyer's interest in preserving the practice justifies a limit on post-sale practice, and in the retirement benefits scenario, such restrictions can be tied to retirement compensation arrangements.

Non-compete restraints for lawyers are allowed only in two narrow situations. After termination, a lawyer’s right to practice cannot be restricted by a general non-compete, but restrictions are permissible if they are connected to the sale of a law practice or to retirement benefits. That makes the best choice the one stating that both retirement benefits and sale of practice restrictions are allowed. In the sale-of-practice scenario, the buyer's interest in preserving the practice justifies a limit on post-sale practice, and in the retirement benefits scenario, such restrictions can be tied to retirement compensation arrangements.