Question: Java Bean Company imports coffee beans and sells them under two - year contracts to Mellow Roast, Inc., and other coffeemakers. The contracts require that

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 Beans competitors. The contracts do

not limit the coffeemakers purchase of tea or other beverage ingredients from other

suppliers, however. 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 contracts be held illegal?


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