Law, Business and Society 11th Edition by Tony McAdams

Exercise 50

Panera, the bakery/café chain, had a clause in its lease that prevented the White City Shopping Center in Shrewsbury, Massachusetts, from renting space to another sandwich shop: "Landlord agrees not to enter into a lease,... for a bakery or restaurant reasonably expected to have annual sales of sandwiches (emphasis added) greater than ten percent (10%) of its total sales... " Panera asked a Massachusetts Superior Court to block the Shopping Center from leasing space to a Qdoba Mexican Grill on the grounds that a lease with the Grill would violate the terms of the Panera lease. How should the Court rule Explain. See White City Shopping Center, LP v. PR Restaurants, LLC, 2006 Mass. Super. LEXIS 544.