non compete info

Discussion in 'Freight Broker Forum' started by trucker from Mi, Feb 27, 2020.

  1. trucker from Mi

    trucker from Mi Bobtail Member

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    We are an existing carrier, that just got its own brokerage authority.

    I am trying to go out and sell/inform customers about our services that we offer (especially our newly added brokerage department). I am wanting to go into as many local business (ones that I've worked directly with before and also ones that I have done business for, through a current broker) and get the word out about our newly added service to get on their board for bidding etc in the future.

    Now, my worry is, I don't want to come across any non-compete issues. All I want to do is spread word about our services
     
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  3. Wasted Thyme

    Wasted Thyme Road Train Member

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    well it is pretty simple. You either have signed non-compete agreement, and therefore can't do the above for clients involved in that agreement. Or you've not.
     
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  4. PPLC

    PPLC Road Train Member

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    You're going to want to look at each contract you've signed. A lot have back-soliciting clauses. Ours does.
     
    AaronP Thanks this.
  5. AaronP

    AaronP Bobtail Member

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    Depending on the specific language in the back-solicitation clause in your carrier/broker agreements, you could be liable for penalties if you get caught soliciting from customers with whom your past relationship is due to accepting brokered loads.
     
    91B20H8 Thanks this.
  6. trucker from Mi

    trucker from Mi Bobtail Member

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    Thank you for your info.
    Now, does the back-soliciting clause pertain to only specific lanes or the customer in whole?

    We have done direct work with multiple customers before running freight for the broker later on
     
  7. Dino soar

    Dino soar Road Train Member

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    This may be a silly question but if you are a carrier that opens a brokerage is it under the same legal name?

    In other words, if it is a different entity, does the non-compete still apply?

    If it does not apply, then that separate brokerage can put your trucks to work without any non-compete issues?
     
  8. Wasted Thyme

    Wasted Thyme Road Train Member

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    that all depends on the contract. I suspect you'd really be smarter asking these questions of your companies lawyer. rather than us arm chair lawyers. After all your company's legal dept isn't gonna take "I asked on the internet" as a valid excuse for them getting sued for mistakes that might happen.
     
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  9. not4hire

    not4hire Road Train Member

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    You really should be asking your lawyer these questions... especially when it gets into an area where there is a preexisting relationship, but you've also run brokered freight. And, again, it depends on the agreement you signed, not one some unknown person on the Internet signed.
     
    trucker from Mi, Wasted Thyme and PPLC Thank this.
  10. PPLC

    PPLC Road Train Member

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    not4hire hits the nail on the head here. I can only speak to our specific contract, not every single one that you may or may not have signed.

    For us, it's customer specific.
     
    not4hire Thanks this.
  11. trucker from Mi

    trucker from Mi Bobtail Member

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    yes, ours is under the same name. In addition to your MC, you get an MC-B for your brokerage.
     
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