COMMERCIAL CODE OF JAPAN
Article 25. Prohibition of Competition by Transferor of a Business
1. In those situations where a business has been transferred, unless
the related parties have indicated to the contrary, the transferor may
not engage in the same kind of business in the same city, town or village,
or any adjacent city, town or village for a period of 20 years.
2. Where the transferor of a business has made a special agreement
not to engage in the same line of business, such special agreement shall
be valid only for a period not exceeding 30 years and only for the same
prefecture and adjacent prefectures.
3. Regardless of the provisions of the previous two paragraphs, the
transferor of a business may not engage in the same line of business for
purposes of unfair competition.
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Article headings are not provided in the Japanese language original
but are provided as it is believed that they assist in the comprehension
of the law
DISCLAIMER: This translation is
for general reference purposes only and is produced on an as isEbasis
with no warranties made whatsoever. Attorney Roderick H. Seeman (licensed
in the USA) is not responsible for any consequences resulting from the
use of this translation. Reliance must be placed
on the original Japanese language text of the law.