Java Bean Company Imports Coffee Beans and Sells Them Under

question 25

Essay

Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast,Inc.,and other coffeemakers.The contracts require that during the two-year term a coffeemaker not buy beans from Java Bean's competitors.The contracts do not limit the coffeemakers' purchase of tea or other beverage ingredients from other suppliers,how?ever.In the second year of the contract,Mellow Roast protests that this arrangement violates antitrust law.Is Mellow Roast correct? If not,why not? If so,under which antitrust statute,or statutes,could these con?tracts be held illegal?

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Definitions:

Disaffirmance

The legal right of a minor to renounce a contract, thereby being freed from any contractual obligations.

Duty

A legal or moral obligation to act or refrain from acting in a certain way.

Sale of Goods

A commercial transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.

Disaffirm

The legal act of renouncing or repudiating a contract or agreement, particularly in cases where one party lacks the capacity to enter into the contract.