Question

QUESTION 1. Kroger management and Meijer management decide to have a sit down face to face meeting. The Kroger people agree NOT to open any stores north of the stores in Midland and Mt. Pleasant. Further, any new stores that will be opened in Michigan will not be within 12 miles of any Meijer Stores. In exchange, Meijer agrees NOT to open any stores in Indiana. Further, Meijer agrees NOT to open any stores west of the western border of Ohio and to stay out of the Southwest area of Michigan from St. Joe’s to Big Rapids.

You work for IGA and you hear rumors about this agreement between your competitors. You consult with your friends at Wal-Mart and they have not only heard the same rumors, but, they have obtained documentation evidencing the agreement. You, acting on behalf of IGA as well as a rep from Wal-Mart, contact Tom Terrific, (TT), your favorite anti-trust attorney. Please share with us what advice he gave you as well as any specific cases, statutes, or principals of law in support of the attorney’s position.

Answer 1

Answer : 1

Based on the contract agreement between Kroger management and Meijer management for agreeing on the territory for their new stores, we on behalf of IGA as well as a representative from Wal-Mart, contact Tom Terrific, (TT), our favorite anti-trust attorney. He advised both of us as below in terms of as any specific cases, statutes, or principals of law in support of the attorney’s position as below

· The contract agreement between Kroger and Meijer is legally ok and they can make such contract agreement based on their mutual agreement and future business goals. This is purely based on their personal business interest and they can act in this manner, there is no legal reservation against such contract agreements between any two retail / grocery businesses.

· Legally all business are allowed to open their grocery /retail stores in any location in the nation/ global market provided they are meeting the legal requirement for opening the business stores at that location and got the permission from legal authorities officially.

· Kroger and Meijer can work jointly in their contracted agreed approach and this approach is similar approach adapted by business alliances, business partners, joint ventures etc.

· Kroger and Meijer contracted agreement is a similar contract agreement of distributors of dealers, where they agree for their defined territory and follow the agreed territory to achieve their business objectives in their defined region only.