Legal Alert - Exclusive Dealing Agreements: Ease of Termination on Par With Duration
by Raphael J. Avraham and Dan W. Goldfine
As a general principle, exclusive dealing agreements spanning less than one year in duration do not violate state or federal antitrust laws, regardless of the parties’ market power. However, a recent decision from a federal court in California suggests that this principle should be expanded to require ease of termination. In Pro Search Plus, LLC v. VFM Leonardo, Inc., the U.S. District Court addressed what is “easily terminable” for the purposes of exclusive dealing agreements.