Exclusive dealing arrangement - sustany/dvg GitHub Wiki

Exclusive dealing arrangements are contracts in which a seller agrees to sell all or a substantial portion of their products or services to a particular buyer, or when a buyer similarly agrees to purchase all or a portion of their requirements of a product or service from a particular seller.�Because exclusive dealing arrangements restrict trade, they are subject to antitrust liability under the Sherman Act or the Clayton Act.�

The Sherman Act is codified in 15 U.S.C. �� 1-38, and was amended by the Clayton Act in 1914, which is codified in 15 U.S.C. 12-27.

Exclusive dealing is not per se or presumptively illegal under either the Sherman Act or the Clayton Act, and are therefore subject to the Rule of Reason. As a result, antitrust liability resulting from an exclusive dealing arrangement depends on the probability that performance of the contract will foreclose competition in a substantial share of the line of commerce affected.�

In making this rule of reason analysis, the court will consider whether the exclusive dealing arrangement in question has any pro-competitive benefits which outweigh its effects restricting trade. Additionally, the court will consider if those pro-competitive effects could be achieved through a less restrictive agreement.�