Restrictive Covenants Under Arizona Law: Step Away from the Step-Down Provisions

Scott F. Gibson

Arizona courts take a skeptical approach to restrictive covenants— covenants not to compete, antipiracy agreements, and confidential information agreements—and have good reason for doing so. Restrictive covenants are contrary to fundamental principles of free enterprise,1as they place restrictions on free and unrestricted competition. Moreover, “the right of an individual to follow and pursue the particular occupation for which he is best trained is a most fundamental right.” And consumers pay a higher price for goods and services when competition is eliminated from the marketplace, even if only temporarily.

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