Legal Question in Business Law in California
Is it legal to have two like-like businesses in the same commercial plaza location?
Asked on 5/24/12, 10:16 pm
2 Answers from Attorneys
It is common for businesses to negotiate terms of a lease prohibiting or limiting competing tenants in the same retail facility, but unless one or both leases has such a provision, there is nothing illegal about it.
Answered on 5/24/12, 11:04 pm
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Yes, it is legal, although many, perhaps most, shopping centers use leases that guarantee a tenant exclusive rights to conduct a type of business in that center, and/or forbid a tenant to compete with another existing tenant. Such leases are considered perfectly legal and often necessary to promote the success of the first bakery, sporting-goods store, pizzeria, etc. to arrive at the shopping center.
Answered on 5/25/12, 8:59 am
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