Non-compete section of contract in California between dealer and wireless service provider

UPDATED: Sep 30, 2022

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Non-compete section of contract in California between dealer and wireless service provider

I recently terminated my agreement with a well known wireless company. I was not
in a direct agreement with them, but had an agreement with a master distributor
who has a direct agreement with them. I terminated my agreement and a week later
switched to another brand at my location. They are attempting to sue me for
violating my non-compete clause which states I’m unable to operate a competing
business within 6 months of terminating my agreement with them. However, I was
never presented the agreement which states this and only signed a page and a half
agreement between the third party master distributor and myself. My question is,
in California will they even recognize such a clause in a contract, and also is
the contract to be upheld even if I was never presented it, nor signed it?

Asked on December 20, 2016 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

1) Yes, agreements like this are enforced in your state, since this is not the  employer/employee context.
2) However, if you only signed an agreement with the master distributor, you are only held to the terms of *that* agreement--you are not held to the terms of their agreement with the wireless company or to any contract to which you did not agree and were not a party.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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