Northeast Data Systems, Inc. v. McDonnell Douglas Computer Systems Company

BREYER, Chief Judge.

In February 1976, Northeast Data, a Massachusetts firm, entered into a contract with Microdata, a California company. In the contract, Microdata promised Northeast, among other things, that:

1) Northeast would become the “sole distributor” for Microdata’s “Reality” line of computer parts and related software in seven Massachusetts counties;

2) Microdata would properly service “Reality” products after Northeast Data sold them to end users;

3) Microdata would supply proper spare parts; and

4) Microdata would pay Northeast a 10% commission on any “Reality” products that Microdata…