Legal Question in Business Law in California
I'm researching to confirm if my situation may result in a "conflict of interest".
I plan to hold an introductory class to airbrushing-to be held in a local mall, using a martial art studio (off hours) for this class.
there is a art gallery-shop- that has classes in painting on canvas. (Not with airbrushes) The owner of said business stated "if I you do not give this business a percentage of your profits in holding a class in this mall such as introductory to airbrush, it would be "a conflict of interest" and would not be tolerated!"
Is this the truth? Nobody else can hold anything to do with art-and or classes separate from the existing art business without it being a conflict of interest?
2 Answers from Attorneys
Your inquiry needs to clean up its facts -- you aren't telling us where your duties are. What is your relationship to the art-gallery and the mall? If you have a duty to them, then yes, it is some type of conflict.
Unless you have some relationship with and obligation to the art shop there is no conflict of interest. What the owner may be talking about, however is not a "conflict of interest" but rather a conflicting use. It is highly common for shopping mall leases to contain limitations on what kind of business activities can be done under the lease. So an art shop may have an agreement with the mall in their lease that the other spaces in the mall cannot be leased or used for art activities, and the lease for the martial arts studio may contain that restriction, which would put the martial arts business owner in breach of the lease. That's really all I can say without a lot more detail.
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