Wal-mart 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.

C

Business

You might also like to view...

Capacity planning in closed-loop MRP:

A) utilizes feedback about workload from each work center. B) may make use of resource requirements profiles (load reports). C) may smooth work center loads with such tactics as overlapping and lot splitting. D) does not add capacity, but rather seeks effective use of existing capacity. E) All of the above are true.

Business

Refer to Additional Case 5.2. What is your best choice of selection tool to assess your number one criterion?

Additional Case 5.2 You are the HR director for a large company. Production has implemented a very successful TQM program, and the firm has a reputation for innovation and quality. Money is tight due to aggressive expansion and marketing efforts, but the firm is doing well. The firm has a diverse, well-balanced workforce. The CEO prefers to reward performance through promotion from within. However, if an employee chooses to leave the company, he or she is not eligible for rehire. The firm's MIS managers have requested that you identify 10 candidates for newly created computer programming jobs. These are entry-level jobs in MIS that require a bachelor's degree. Expansion plans in production have also created a number of new entry-level jobs and two new first-line supervisor jobs. An upper-level management position is open as well. This is a key position, and the longer it remains open, the more likely it is that the company will begin to lose market share. There are a number of excellent candidates for this job. "Fit" with the organization is one of the top criteria for the selection. The CEO wants both peers and subordinates to be involved in the process, but the CEO will make the final decision. The CEO wants your advice about the best selection tool. The CEO wants to narrow the field quickly and work with the data as he goes along, rather than obtain all the information on each candidate first. A) Unstructured interview B) Cognitive ability testing C) An assessment center D) Reference checking

Business