Walmart entered into a lease agreement for the anchor space in a shopping center and the lease included the following clause:
"Neither Lessor nor any affiliate or related party shall, without Lessee's prior written consent, own, operate or grant any lease or permit any assignment or sublease for a store (or any portion of a store) in the Shopping Center or any of Lessor's real estate located within 1,500 yards of the Shopping Center which permits a tenant under such lease to sell or offer for sale groceries, meats, poultry, seafood, dairy products, fruits, vegetables or baked goods, provided these restrictions shall not be deemed to prohibit a restaurant serving prepared food."
The landlord leased a space to Boston Market, which sells chicken, salads, and other prepared foods for a type of take-out meal that seems to be home-cooked. Which of the following statements is true?
A) The clause in the lease is anticompetitive and cannot be enforced.
B) The clause in the lease could be enforced if it were narrower in scope.
C) Boston Markets fits within the exception and the landlord can lease to them without violating the clause.
D) The clause in the lease is void for unconscionability.
Correct Answer:
Verified
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