Question
Seattle Best Seafood Company (SBS) imports salmon and sells it under four-year contracts to Sysco Food, Inc., (SFI) and other food distributors. The contracts require
Seattle Best Seafood Company (SBS) imports salmon and sells it under four-year contracts to Sysco Food, Inc., (SFI) and other food distributors. The contracts require that, during the four-year term, a food distributor may not buy salmon from SBSs competitors. The contracts do not limit the distributors purchase of other seafood from other suppliers. In the second year of the contract, SFI protests that this arrangement violates antitrust law. Is SFI correct? If not, why not? If so, under which antitrust statute, or statutes, could these contracts be held illegal? Please fully explain and support your answer with examples. You must provide an example to receive all the possible points for this question.
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