Dr. Penelope Snifflestopper, a pediatrician, signs a noncompete agreement with her new pediatric practice, located in Scottsdale, Arizona. The agreement says that if she leaves the practice, she is forbidden from practicing medicine anywhere in Maricopa County for 2 years. Maricopa County stretches 132 miles (212km) from east to west and 103 miles (166 km) from north to south. Arizona courts will enforce reasonable noncompete agreements.

In the case of Penelope Snifflestopper’s noncompete agreement, the agreement will not be enforced.

Question

Dr. Penelope Snifflestopper, a pediatrician, signs a noncompete agreement with her new pediatric practice, located in Scottsdale, Arizona. The agreement says that if she leaves the practice, she is forbidden from practicing medicine anywhere in Maricopa County for 2 years. Maricopa County stretches 132 miles (212km) from east to west and 103 miles (166 km) from north to south.   Arizona courts will enforce reasonable noncompete agreements.

In the case of Penelope Snifflestopper’s noncompete agreement, the agreement will not be enforced.

BlackTom AI · Accepted Answer

The question presents a true/false scenario about a physician noncompete in Arizona and asks whether the statement that the agreement will not be enforced is true or false.
Option 1: True — The agreement will not be enforced. In evaluating noncompete agreements for physicians in Arizona, courts generally enforce reasonable restraints that protect legitimate business interests, but they strike down overly broad geographic scopes that are not necessary to protect those interests. Here, the restraint spans the entire Maricopa County area for two years, which can be interpreted as an excessively broad geographic restriction for a pediatric practice. If the geographic limitation is broader than what is reasonably necessary to protect the practice’s patient base and goodwill, the court may deem the restriction unenforceable. Therefore, the proposition that the agreement will not be enforced is plausible because the geographic scope may fail the reasonableness standard, even though the duration of two years is within common limits. This aligns with the principle that Arizona courts enforce noncompetes only when they are reasonable in scope, duration, and necessary to protect legitimate interests.
Option 2: False — The agreement will be enforced. If one assumes the geographic scope is considered reasonable (e.g., tied to the local patient base and not the entire county) and the contract aims to protect legitimate interests such as patient goodwill and confidential information, a court might uphold the restraint. Arizona’s general stance is to enforce reasonable noncompetes; however, whether this particular 2-year, Maricopa County-wide constraint is reasonable depends on contextual factors (such as the physician’s patient base, the practice’s geographic market, and whether the restriction protects legitimate interests without being overly burdensome). Critics would point out that a two-year ban across a whole county could be viewed as too broad, potentially limiting a physician’s ability to earn a livelihood, and thus would be unlikely to be enforced if the court prioritizes patient access and freedom to practice.
In sum, the key considerations are reasonableness of geographic scope, duration, and the protected interests. The statement that the agreement will not be enforced hinges on the geographic scope being deemed unreasonable; if the court finds the scope overly broad relative to the protected interests, it may refuse enforcement. If instead the court finds the scope appropriately narrow to protect legitimate interests, enforcement could be upheld. The scenario as stated—emphasizing broad county-wide restraint—tends toward non-enforcement due to potential unreasonableness, making the assertion that it will not be enforced defensible, but it is not categorically guaranteed without considering all factors the court would weigh.

BUSFIN 3500 AU2025 (2111) Final Exam Au_1_25- Requires Respondus LockDown Browser

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