Company A signed an exclusive contract with Company B that prevents Company C from advertising on Company B's newspaper, is this legal?
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So Company B is an advertising firm that runs a newspaper. Company C and A both Company B's client. When Company C decide to drop the ad on the newspaper. Company A steps in and ask Company B to sign an exclusive contract. The contract is a 2 year long contract in exchange, Company B cannot service company C what so ever. IS this legal or illegal under the United States law?
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Answer:
Sounds legal. Companies sign exclusivity agreements often. That is why most restaurants only sell coke or Pepsi. If it is worth it, consult a lawyer
JoshDing at Ask.com old Visit the source
Other answers
As long as long as company C didn't have a contract that pre-dates the exclusivity contract with company A, it would be legal.
gatorblu
Call an attorney.
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