In CASE 12.2,Edwards v.Arthur Andersen LLP (2008),plaintiff Edwards was a tax manager at an Arthur Andersen office in Los Angeles.Arthur Andersen was later indicted for its role in the Enron debacle,but the AA subsidiary HSBC offered to hire Edwards on the condition that he sign a "termination of non-compete" agreement (TONC).Edwards signed the employment offer but not the TONC.The offer was rescinded and Edwards was terminated.Edwards sued.The main issue dealt with California's statutory ban on most:

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The main issue dealt with California's statutory ban on most noncompete agreements, or agreements that restrict employees from working for a competitor after leaving their current job. Edwards was offered employment by HSBC on the condition that he sign a termination of non-compete agreement, and when he refused, his offer was rescinded and he was terminated. Edwards argued that the TONC was invalid under California law.