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Article 21Non-Competition by Transferor Company

第二十一条(譲渡会社の競業の禁止)

Unless the parties otherwise manifest their intention, a company which transferred its business (hereinafter in this Chapter referred to as "transferor company") may not carry out the same line of business within the area of the same city, town or village (including special wards, and ward or administratively consolidated ward of the cities designated under Article 252-19 paragraph (1) of the Local Autonomy Act (Act No. 67 of 1947); hereinafter the same applies in this paragraph), or within the area of any of its neighboring cities, towns or villages for twenty years from the day of the transfer of the business.

事業を譲渡した会社(以下この章において「譲渡会社」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、地方自治法(昭和二十二年法律第六十七号)第二百五十二条の十九第一項の指定都市にあっては、区又は総合区。以下この項において同じ。)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、その事業を譲渡した日から二十年間は、同一の事業を行ってはならない。

If the transferor company agreed to special provisions to the effect that it will not carry out the same line of the business, the effectiveness of the special provision is limited to the period of thirty years from the day of the transfer of the business.

譲渡会社が同一の事業を行わない旨の特約をした場合には、その特約は、その事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 company may not carry out the same line of business with the purpose of unfair competition.

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

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