New Mexico Exclusive Dealing Agreement between Manufacturer and Distributor

• Category: Contracts - Distributorships
• State: Multi-State
• Control #: US-0800BG
• Format: Word; Rich Text

Description

Exclusive dealing arrangements are essentially requirements contracts in which a seller agrees to sell all or a substantial portion of its products or services to a particular buyer, or when a buyer similarly agrees to purchase all or a portion of its requirements of a product or service from a particular seller. Exclusive dealing is not per se or presumptively illegal under either the Sherman Act, 15 U.S.C. Sec. 1-7, or the Clayton Act, 15 U.S.C. Sec. 12-27. Antitrust concerns related to exclusive dealing arrangements are based on the possibility that performance of the contract will foreclose competition in a substantial share of the line of commerce affected. To determine whether a particular exclusive arrangement operates as an illegal restraint on trade, courts apply the rule of reason of whether the restraint imposed is such as merely regulates and perhaps thereby promotes competition or whether it is such as may suppress or even destroy competition.