ND HB1351

Amends North Dakota Century Code section 9-08-06 to modify rules governing noncompete agreements, which are generally void unless they fall within specified exceptions.

Allows a person selling a business's goodwill to agree with the buyer to refrain from carrying on a similar business within a "reasonable geographic area" and for a "reasonable length of time" rather than the previous "specified county, city, or part thereof" language.

Permits partners, members, or shareholders to agree not to carry on a similar business within a "reasonable geographic area" where the business operates during dissolution, dissociation, or sale of ownership interests, replacing the previous "same city" standard.

Passed the House 82-9 (3 absent) and the Senate 40-5 (1 absent) during the 2019 regular session.