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:

Quantity of Money

The total amount of money available in an economy, including currency and balances held in checking and savings accounts.

Prices Fall

A situation where the amount of money required to purchase goods or services decreases, typically due to reduced demand or increased supply.

Quantity Theory

An economic theory that relates the level of money supply in an economy to the level of prices and the volume of production.

Hyperinflations

Extremely high and typically accelerating inflation rates, eroding the real value of the local currency and leading to a loss of confidence in the currency.