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:

Property Rights

Legal rights to use, transfer, or sell a particular property or resource.

Sustainable Rate

Refers to the level at which a resource can be used without depleting it, ensuring its availability for future generations.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services, including raw materials, labor, and overheads.

Property Rights

Legal rights to possess, use, and dispose of assets, including the right to benefit or generate income from them.