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Article 16Non-Competition by Transferor of Business

第十六条(営業譲渡人の競業の禁止)

Unless the parties manifest a different intention, a merchant that transfers business (hereinafter referred to as the "transferor" in this Chapter) must not engage in the same line of business within the limits of the same city, town, or village (including within the limits of the same special ward; or within the limits of the same ward or administratively consolidated ward, as it concerns designated cities referred to in ; the same applies hereinafter), or within the limits of a neighboring city, town, or village, for 20 years after the day of the business transfer.

営業を譲渡した商人(以下この章において「譲渡人」という。)は、当事者の別段の意思表示がない限り、同一の市町村(特別区を含むものとし、の指定都市にあっては、区又は総合区。以下同じ。)の区域内及びこれに隣接する市町村の区域内においては、その営業を譲渡した日から二十年間は、同一の営業を行ってはならない。

If a transferor specifically agrees not to engage in the same line of business, that special agreement is only valid for 30 years after the day of the business transfer.

譲渡人が同一の営業を行わない旨の特約をした場合には、その特約は、その営業を譲渡した日から三十年の期間内に限り、その効力を有する。

Notwithstanding the provisions of the preceding two paragraphs, the transferor must not engage in the same line of business with the intention of engaging in unfair competition.

前二項の規定にかかわらず、譲渡人は、不正の競争の目的をもって同一の営業を行ってはならない。

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