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:

Natural Resources

Natural resources, including minerals, forests, water, and fertile land, that can be exploited for financial advantages.

Intangibles

Non-physical assets such as patents, trademarks, copyrights, goodwill, and brand recognition that have value.

Salvage Value

The projected remaining value of an asset once it has reached the end of its useful life and is no longer viable for production.

Asset's Value

The worth of an asset, determined by factors such as market value, cost, and depreciation.