The California Court of Appeal has ruled that a partial sale of a business can bind the seller-owner to a noncompetition agreement. This decision is significant for business owners in California, as it clarifies the enforceability of noncompete clauses in the context of partial business sales. Additionally, the Supreme Court has issued a ruling that impacts the valuation of closely held corporations that utilize life-insurance-funded redemption-type buy-sell agreements. Legal experts emphasize the importance of updating shareholder agreements to avoid costly litigation, particularly in New Jersey, where businesses are advised to prepare for potential disputes. The California Supreme Court has also outlined severance standards for unconscionable contract provisions in arbitration cases, further shaping the legal landscape for businesses operating in the state.