Non-Compete Enforceability: AI-Assisted State-Law Mapping in a Rapidly Shifting Landscape

End-of-lesson check

15 questions · take it digitally for instant feedback at tendril.neural-forge.io/learn/quiz/end-legal-non-compete-enforceability-adults

1. A paralegal uses an LLM to research recent Minnesota non-compete case law and receives citations to three cases decided in the last six months. What should the attorney do before including these cases in a client memo?

   1. Use a different LLM to cross-check the case citations
   2. Search for the cases on Google to see if they are mentioned on legal blogs
   3. Verify each case citation in Westlaw, Lexis, or Bloomberg Law to confirm it exists and stands for the proposition cited
   4. Accept the LLM output as accurate since it cited specific case names and docket numbers

2. Which of the following best describes what AI can reliably do in a non-compete enforceability analysis?

   1. Generate a comparative summary of enforceability standards across multiple states
   2. Provide current case law from the past six months without any verification needed
   3. Predict with certainty how a specific judge will rule on a particular non-compete clause
   4. Replace primary-source legal research entirely for court filings

3. In the context of restrictive covenants, what does the 'blue-pencil rule' allow a court to do?

   1. Rewrite a contract to add terms the parties never agreed to
   2. Strike out or modify unenforceable portions of a covenant while enforcing the valid portions
   3. Reject a non-compete entirely if any portion is found unreasonable
   4. Automatically convert a non-compete into a non-solicitation agreement

4. An attorney asks an LLM to provide the maximum permissible duration for non-competes in California and the geographic scope limits in Connecticut. The LLM provides specific numbers. What limitation should the attorney keep in mind?

   1. California and Connecticut have identical non-compete laws since they are both coastal states
   2. The LLM's training data likely lags behind recent statutory changes in both states
   3. LLMs are equally reliable for current statutes and case law from any time period
   4. The attorney should use the LLM output directly since it provided specific durations and geographic limits

5. Which term describes a provision where an employee receives continued salary and benefits during the restricted period after leaving employment?

   1. Covenant not to compete
   2. Garden leave
   3. Blue-pencil clause
   4. Consideration requirement

6. The lesson describes the current state of non-compete law as a 'moving target.' What factor most directly contributes to this characterization?

   1. The elimination of all non-compete disputes by the FTC
   2. The static nature of non-compete case law over the past decade
   3. The consistent and uniform approach all states take to non-compete enforcement
   4. Rapidly changing state legislation and shifting court decisions on enforceability

7. An attorney drafts a client memo about non-compete enforceability relying primarily on AI-generated summaries. What is the greatest professional risk identified in the lesson?

   1. Being unable to explain the legal reasoning to the judge because the AI wrote the memo
   2. Losing billable hours because the AI completed the research too quickly
   3. Citing hallucinated case law that does not exist, exposing the client and attorney to malpractice liability
   4. Facing ethical sanctions for using AI at all in legal research

8. What type of provision might an employer use as an alternative when a non-compete is likely unenforceable in a particular jurisdiction?

   1. A golden parachute provision
   2. A customer non-solicitation clause
   3. A liquidated damages clause
   4. A forum selection clause

9. What does the lesson identify as the single most common malpractice trap when using LLMs for legal research?

   1. Citing hallucinated case law
   2. Using outdated case citations from more than five years ago
   3. Forgetting to include a disclaimer about AI assistance in the memo
   4. Failing to bill the client for AI-assisted research time

10. An LLM generates a summary stating that a particular state applies a 'presumption of enforceability' to non-competes. What additional information would be needed to fully assess enforceability in that state?

    1. The federal standard for non-compete enforceability, which overrides state law
    2. Nothing further—the presumption of enforceability conclusively determines all non-compete disputes
    3. A list of all judges in the state to predict how each would rule
    4. The specific statutory text and recent case law interpreting the presumption, which requires primary-source verification

11. The lesson mentions the FTC's attempted non-compete ban. What was the general effect of this attempt, even though it did not go into effect?

    1. It established binding federal standards that all states must follow
    2. It eliminated the need for any non-compete analysis in employment contracts
    3. It contributed to the rapidly shifting landscape of non-compete enforceability and prompted increased state-level action
    4. It was upheld in full by the Supreme Court

12. What is the primary reason an attorney should not rely solely on an LLM to determine the current enforceability of a non-compete in a specific state?

    1. Non-compete law has remained static and unchanged for the past twenty years
    2. Attorneys are prohibited from using any AI tools in legal research by ethical rules
    3. The LLM's training data may not include the most recent statutory changes or judicial decisions
    4. LLMs have been specifically trained on all state bar exam materials and are infallible

13. In the context of non-compete analysis, what does 'consideration' refer to?

    1. The duration of the restricted period
    2. The specific job title of the employee being restricted
    3. Something of value exchanged between the parties to make the contract enforceable, such as new employment or continued employment
    4. The geographic area covered by the restrictive covenant

14. An attorney uses an LLM to draft a cover memo explaining non-compete enforceability to a client. What should the attorney verify before sending the memo?

    1. That the LLM's response time was under thirty seconds
    2. That no other attorneys in the firm have seen the memo yet
    3. All statutory citations and case citations in the memo using primary legal databases
    4. That the LLM used the most recent version of the client's contract template

15. The lesson describes the past three years as showing more change in non-compete law than the prior thirty years. What implication does this have for legal practice?

    1. State legislatures have stopped proposing new non-compete legislation
    2. Non-compete law has stabilized and attorneys can rely on older case precedent without concern
    3. Attorneys should avoid using AI tools because the law changes too quickly for them to be useful
    4. Attorneys must continuously update their knowledge and verify AI-generated summaries against current primary sources