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In this tutorial, Steve Lato discusses the legality of non-compete agreements, which are contracts where one party agrees not to compete with another for a certain time and region. He notes that while each of the 50 states in America has variations in their laws regarding non-compete agreements, the general rationale tends to be consistent across most states. Lato emphasizes that this information is not legal advice specific to any state and encourages viewers to consult local attorneys for their particular circumstances. Generally, non-compete agreements are enforceable as long as they are reasonable in scope.