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Tampa Electric Co. v. Nashville Coal Co.
United States Supreme Court
365 U.S. 320 (1961)
Tampa Electric Company (Tampa Electric) (plaintiff) was a public utility company that provided electricity in and around Tampa Bay, Florida. In May 1955, Tampa Electric entered into an agreement with Nashville Coal Company (Nashville Coal) (defendant), a producer of coal, which obligated Tampa Electric to buy from Nashville Coal all of Tampa Electric’s coal needs for two units of a new electric plant for a period of 20 years. The exclusive-dealing arrangement also provided that Tampa Electric would purchase at least 225,000 tons of coal per year for the duration of the contract. Eventually, Tampa Electric sought a declaratory judgment that the exclusive-dealing arrangement was unlawful under § 3 of the Clayton Act and thus unenforceable. The district court and court of appeals held in favor of Tampa Electric, finding the agreement to violate § 3, and Nashville Coal appealed.
Rule of Law
Holding and Reasoning (Clark, J.)
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