ANTI TRUST LAWS

1) Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast, Inc., and other coffee makers. The contracts require that during the two-year term a coffee maker may not buy beans from Java Beans competitors. The contracts do not limit the coffee makers purchase of tea or other beverage ingredients from other suppliers, however. In the second year of the contract, Mellow Roast protests that this arrangement violates antitrust law. Is Mellow Roast correct?

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2) Chicken Delight, a fast food restaurant chain, requires its franchisees to purchase their broilers, ovens and cooking pans from Chicken Delight. Big Bird Enterprises, an owner of a Chicken Delight restaurant, objects to having to buy any of these items from Chicken Delight because it can purchase the broilers, ovens and cooking pans sold by Chicken Delight elsewhere at a cost 1/3 less than is charged by Chicken Delight. Big Bird Enterprises charges that Chicken Delights actions violate anti trust laws. Is Big Bird Enterprises correct?

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