Shopping Center Lease Violate NY Anti-Trust Laws
A shopping center landlord may be violating anti-trust laws by using clauses requested by other tenants if those clauses restrict the use of the property and give certain tenants a competitive advantage. The following clauses are illegal:- The exclusion by department stores of discount stores–this is a “vertical group boycott” between the landlord and the department store.
- Requirements that all new tenants be approved by the department stores in a mall–this is a “horizontal group boycott”.
- Requirements as to the quality, price range, or types or brands of merchandise that retail stores may carry–these may be interpreted as “price fixing”.
- Requiring the landlord to maintain a balanced and diversified group of retail stores, merchandise, and services in a shopping center.
- Retaining the right to prohibit non-retail facilities.
- Retaining the right to prevent the developer from allowing objectionable tenants such as pornography shops, massage parlors, and body and fender shops.
- Retaining the right to approve the initial layout of the shopping center.