Legal Opinion

Progressive Milk Co. v. Luna

Appellate Division of the Supreme Court of the State of New York

Decided March 26, 1987No. Appeal No. 27978; Appeal No. 27979PublishedCited by 1 opinion

1Opinion of the Court

OPINION OF THE COURT

Kupferman, J. P.

We hold that a requirements contract, by which the buyer is required to buy all of its particular needs in certain prod*249ucts from one supplier, is not a per se violation of the Donnelly Act, General Business Law § 340.1

For the agreement to be illegal, there must be clearly unreasonable restraints and there should be a rule of reason inquiry to determine the actual effect of the requirements contracts2 on the relevant market.

These are two separate actions to recover damages for breach of agreements providing for the retailer to take all of its needs, for a…

2Cases cited4 opinions

  1. Matsushita Electric Industrial Co., Ltd. v. Zenith Radio CorporationSupreme Court of the United States · 1986
  2. Cargill, Inc. v. Monfort of Colorado, Inc.Supreme Court of the United States · 1986
  3. Fortner Enterprises, Inc. v. United States Steel Corp.Supreme Court of the United States · 1969
  4. People v. Milk Exchange, Ltd.New York Court of Appeals · 1895

3Cited by1 opinion

  1. Harman Becker Automotive Sys., Inc. v. Avnet, Inc.Appellate Division of the Supreme Court of the State of New York · 2025

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