Yes, they can do this -
Posted By: Amanda on 2009-02-08
In Reply to: Question: Did this also happen to you? - x
This is called a noncompete clause and as long as it is not overly restrictive it is a binding agreement if you sign the contract.
It is going to be enforced in court as long as there is a reasonable time period specified.
I just had a Legal Environment in Business test over this exact subject this week.
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