Screen a conditional-supply or exclusive-dealing clause
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract the product, the condition that the buyer not use a competitor's goods, and the territory the clause states. Do not decide the effect on competition.
- What the lawyer must review
- Clayton Act § 3, 15 U.S.C. § 14, makes it unlawful for a person engaged in commerce, in the course of that commerce, to lease or sell goods, wares, merchandise, machinery, supplies or other commodities, whether patented or not, for use, consumption or resale in the United States, or to fix a price or a discount or rebate on that price, on the condition or agreement that the lessee or purchaser will not use or deal in the goods of a competitor, where the effect may be to substantially lessen competition or to tend to create a monopoly. The statute is an effects test. It does not say every exclusive clause is unlawful. You decide the effect. Opinion 512: verify the extract against the clause.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.