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Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31220
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We recently signed a consultant agreement with a previous business

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We recently signed a consultant agreement with a previous business owner (previous owner).
That business (old business) bankrupted and its asset was purchased by another person (new business owner).
The previous owner worked for the new business owner for a while and was terminated by the new business owner. The previous business owner didn't sign any non-compete agreement with the new business owner.
My questions are:
Can the previous business owner work for another company for the same type of business and compete with the new business owner?
Can the previous business owner work for himself for the same type of business and compete with the new business owner?
If the new business owner find out that the previous business owner is working with us as a consultant, can the new business owner take legal action against us?
How can we pretect ourselves?
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for your question.

As long as there's no non-compete agreement in place that would prohibit this person from doing that, then he is free to find employment wherever he pleases.

Also, California is the only state in the union that prohibits non-compete agreements, so even if there was one, it should not be valid.
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