Legal Question in Business Law in California

prevention of competition

What law or statute says that it is illegal for a company to attempt to prevent competition.

I am attempting to obtain permits for a medical development project near a large hospital. The hospital has spoken against my project at several City Hearings on the grounds that they don't want the competition. I have been told that this is illegal. If so, what is the statute?


Asked on 5/01/99, 1:08 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: prevention of competition

I don't claim to be an expert in this field, but I think some additional details would be helpful. While most for-profit corporations are not allowed to stifle competition (and a large variety of laws -- both state and federal -- exist to enforce this ban), there may be exceptions for hospitals. Especially if the hospital is public or non-profit (and most fit into one of these categories or the other) you may find that various laws and regulations permit them to take the stand they have taken.

As I said, I'm not an expert on this. Someone more knowledgeable than I might know exactly what rules apply. Even so, I'd be happy to discuss this further if you wish.

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Answered on 5/04/99, 1:43 pm


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