Does a business partner have a right to prevent the sale of the goodwill of a business?
California, United States of America
The following excerpt is from Robinson v. U-haul Co. Of Cal., A124070, A124096, A124097, No. FSC031532 (Cal. App. 2010):
4. "Business and Professions Code sections 16601 and 16602 permit broad covenants not to compete in two narrow situations: where a person sells the goodwill of a business, and where a partner agrees not to compete in anticipation of dissolution of a partnership." (Kolani v. Gluska (1998) 64 Cal.App.4th 402, 406.)
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