dealer ship contract question

[gullit1]

good evening! I owned a dealership territory to a supposed nationwide/internet-based installation company that I cancelled last august. we are located in florida and they are in NH. my contract states that I cannot compete with my previus company for one year from cancellation date. the company website had not been updated since I cancelled in august. (actually states a promo date ending of May 26 2009 as of 1/3/10) It is my belief that they are no longer trying to do business as they did before, though they don't truly seem out of business. I don't believe they are advertising in my geographic territory, and I don't believe someone has bought my territory from them either. If they try to sue me, will they have favorable grounds, or being that they are barely acting as a company as previusly stated, do you believe I can win a case if brought about?

[AFFA]

I wish to state the the non compete clause as stated in the contract is legally valid in Virginia. However, this clause has to be reasonable. These types of clauses are allowed only to the extent these are just and protect legitimate interest of the business. In case the company which has put restrictions on you is not operating in Virginia you can always argue in the Court that the restrictions are not reasonable as the company is not carrying out its business in Virginia. Further, on this clause of the agreement it can be argued that it being in the nature of restraint on trade, this clause is not valid.

AFF

[gullit1]

Thank you for your response AFFA. I appreciate the thoughts, information and concern. I too thought that it is reasonable for me to continue in this business as they are not to my knowledge, combined with logical deductive reasoning, doing business in my geographic location. I am confused to why you spoke of Virginia though. Is it becaue you have knowledge of Virginia law only, or because you only believe that this contractual agreement issue would be valid in Virginia? Thanks again for your time and help!

What governing law is cited in the contract?

I think the poster meant NH....the law would be the same there on this issue.