The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.

Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.

Laws vary from state to state, but a commercial landlord’s ability to shut off a tenant’s utilities is usually determined by the terms of the lease agreement and the state’s contract law—to determine, for example, if any breach of the lease agreement by the tenant was a material breach that might justify an extreme measure such as shutting off the utilities.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who shuts off a tenant’s utilities because the tenant is a few days late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing.

In Arkansas, commercial tenants are generally considered more knowledgeable than residential tenants and are expected to be proactive in understanding and negotiating their lease agreements. Unlike residential leases, commercial leases in Arkansas do not offer the same level of statutory protection to tenants, placing a greater onus on the business tenant to ensure their rights and obligations are clearly outlined in the lease. The terms of the lease typically govern a commercial landlord's ability to shut off utilities, and such actions are influenced by Arkansas's contract law. This includes the principle that there is an implied duty of good faith and fair dealing in contractual relationships. Therefore, a commercial landlord in Arkansas may be found in breach of this duty if they shut off a tenant's utilities for a minor lease violation, such as being slightly late on rent. It is crucial for commercial tenants to carefully review and negotiate lease terms to protect their business interests.