15 U.S.C. § 14 — Sale, etc., on agreement not to use goods of competitor

submitted 112 years ago by ch. 323 to r/title-15-COMMERCE-AND-TRADE · 156 words · no verdicts yet

in plain englishAI-generated · not legal advice

A business engaged in interstate commerce cannot sell, lease, or set special prices on goods on the condition that the buyer won't deal with a competitor's goods. This rule only applies when the deal would substantially reduce competition or tend to create a monopoly.

This section is a single, undivided provision. This section makes it unlawful for a person engaged in commerce to do something specific. It's illegal to lease goods, sell goods, or agree to sell goods — the law covers goods, wares, merchandise, machinery, supplies, or other commodities, whether patented or not — for use, consumption, or resale in the United States, its territories, the District of Columbia, or anywhere else under U.S. jurisdiction. It is also illegal to set a price, or a discount, or a rebate, for such goods. What makes this illegal is a specific condition attached to the deal: that the buyer or lessee agrees not to use or deal in the goods of a competitor of the seller or lessor. This rule only kicks in when the lease, sale, or condition might substantially lessen competition, or might tend to create a monopoly, in a line of commerce.

the actual law source: uscode.house.gov ↗public domain

It shall be unlawful for any person engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, whether patented or unpatented, for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies, or other commodities of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce.

Source credit: (Oct. 15, 1914, ch. 323, § 3, 38 Stat. 731.)

history & why it existsrecord from the source credit

1914Enacted · Act of Oct. 15, 1914, ch. 323 · 38 Stat. 731

A history note hasn’t been published yet. The record shows enactment by ch. 323 on 1914-10-15.

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