https://www.taxtmi.com/caselaws?id=275664 Wide contractual clauses in stockist agreements may themselves constitute a restrictive trade practice, and their legality is to be judged by their meaning and probable effect on competition rather than proof of actual misuse. Clause 5 was treated as permitting compelled purchase and resale price maintenance, while Clause 9 was treated as giving unreasonably wide control over redistribution, transport, and stock availability, amounting to area allocation and a restraint on trade. The Court distinguished the earlier truck-distribution precedent because this case concerned ordinary consumer goods without a comparable service obligation or public necessity. The Commission's refusal to save the clauses under statutory gateways and its application of the rule of reason were upheld. en-us Sun, 17 Apr 1977 00:00:00 +0530 Thu, 11 Oct 2018 17:30:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275664 Wide contractual clauses in stockist agreements may themselves constitute a restrictive trade practice, and their legality is to be judged by their meaning and probable effect on competition rather than proof of actual misuse. Clause 5 was treated as permitting compelled purchase and resale price maintenance, while Clause 9 was treated as giving unreasonably wide control over redistribution, transport, and stock availability, amounting to area allocation and a restraint on trade. The Court distinguished the earlier truck-distribution precedent because this case concerned ordinary consumer goods without a comparable service obligation or public necessity. The Commission's refusal to save the clauses under statutory gateways and its application of the rule of reason were upheld. Case-Laws Indian Laws Sun, 17 Apr 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275664