Legal Question in Business Law in New York

Anti-trust Violation
Ridell,a sports company, manufactures sporting equipment. Company ABC wants to sell Ridell equipment in thier retail stores. They enter into a franchise contract. Ridell puts a restriction on the contract stating that Ridell helmets can not be sold to any non Ridell sporting goods dealers. If ABC sells to a non Ridell sporting goods dealer the relationship will be terminated. XYZ, a non Ridell dealer discovers that ABS has more than 1000 helmets left after the season. XYZ has some contacts at ABC and they get together and work out a deal for XYZ to buy the remaining helmets. Ridell discovers this and terminates the relationship with ABC. ABC is extremely mad and wants to sell Ridell becuase they know they are good selling equipment. ABC sues Ridell stating they are violating Anti-trust laws section 1. My question is ARE THEY VIOLATING THE LAWS WHEN THEY SPECIFICALLY STATED IN THIER CONTRACT THAT RIDELL EQUIPMENT CAN NOT BE SOLD TO A NON RIDELL DEALER????

Asked on 12/09/01, 10:30 pm

Gregory Sohns Colamarion & Sohns, LLP

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Re: Anti-trust Violation

We would be happy to discuss this situation with you. Please call on (212) 355-2777. Gregory Sohns

Answered on 12/10/01, 10:27 am

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