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As a manufacturer, can you enter a partnership agreement with

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the very vendors you sell...
As a manufacturer, can you enter a partnership agreement with the very vendors you sell to so that they stay loyal to company and only sell your products? Provided by common consent, are there any limitations given that it will cross anti-trust laws?
Submitted: 6 years ago.Category: Business Law
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7/4/2011
Business Lawyer: Lucy, Esq., Attorney replied 6 years ago
Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
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Hi,

My name is XXXXX XXXXX I'd be happy to answer your questions today.

A contract that prohibited one company from doing business with another company's competitors would be subject to scrutiny under anti-trust laws. If the purpose of such an agreement is to restrain competition, it would not be permitted. So, for example, if a judge believed that the agreement was entered for the purpose of creating a monopoly in a certain field. What you would have to do is show that there was some other purpose for the agreement, and that both sides benefited from it.

If you wanted to do such a thing, you would want to have an attorney draft it to help you avoid some of the downfalls. The contract isn't per se illegal, but you would want to be careful with the language. Here is some more information:
http://www.kkrlaw.com/changes/exclusive.htm
Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
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