19.0777.02000
Sixty-sixth
Legislative Assembly HOUSE BILL NO. 1351
of North Dakota
Introduced by
Representatives Boschee, M. Johnson, Kading, Mitskog, Mock, Schneider
Senators Bakke, Dwyer
1 A BILL for an Act to amend and reenact section 9-08-06 of the North Dakota Century Code,
2 relating to contractual noncompete provisions.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 9-08-06 of the North Dakota Century Code is amended
5 and reenacted as follows:
6 9-08-06. In restraint of business void - Exceptions.
7 EveryA contract by which anyone is restrained from exercising a lawful profession, trade, or
8 business of any kind is to that extent void, except:
9 1. One whoA person that sells the goodwill of a business and the person's partners,
10 members, or shareholders may agree with the buyer to refrain from carrying on a
11 similar business within a specified county, city, or a part of eitherreasonable
12 geographic area and for a reasonable length of time, so long asif the buyer or any
13 person deriving title to the goodwill from the buyer carries on a like business thereinin
14 that area.
15 2. Partners, members, or shareholders, upon or in anticipation of a dissolution of thea
16 partnership, limited liability company, or corporation; upon or in anticipation of a
17 dissociation of a partner or member; or as part of an agreement addressing the
18 dissociation or sale of a partner, member, or shareholder's ownership interest, may
19 agree that all or any number of them will not carry on a similar business within the
20 same citya reasonable geographic area where the partnership, limited liability
21 company, or corporation business has been transacted, or within a specified part
22 thereofof the area.
Page No. 1 19.0777.02000


Statutes affected:
INTRODUCED: 9-08-06
Enrollment: 9-08-06