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PROGRESSIVE MILK CO. v. LUNA

126 A.D.2d 247 (1987)

Progressive Milk Co., Ltd., Appellant-Respondent, v. Juan E. Luna et al., Respondents, and Gold Medal Farms, Inc., Defendant and Third-Party Plaintiff-Respondent-Appellant. Progressive Milk Co., Ltd., et al., Third-Party Defendants-Respondents. (Appeal No. 27978.) Progressive Milk Co., Ltd., Appellant, v. Antonio Garcia et al., Respondents. (Appeal No. 27979.)

Appellate Division of the Supreme Court of the State of New York, First Department.

March 26, 1987

Attorney(s) appearing for the Case

William V. Alesi of counsel (Donald Bernstein with him on the brief; Saul L. Victor and Marcus & Katz, attorneys), for appellant-respondent.

Michael G. Shannon of counsel (Summit Rovins & Feldesman, attorneys), for Gold Medal Farms, Inc., defendant and third-party plaintiff-respondent-appellant, and Juan E. Luna and others, respondents.

Michael McCormick for New York State Department of Agriculture & Markets, amicus curiae.

Lloyd Constantine of counsel (Colvin Grannum and Alan Pfeffer on the brief; Robert Abrams, Attorney-General, attorney), for State of New York, amicus curiae.

SANDLER, ROSS, CARRO and KASSAL, JJ., concur.

KUPFERMAN, J. P.

We hold that a requirements contract, by which the buyer is required to buy all of its particular needs in certain products from one supplier, is not a per se violation of the Donnelly Act, General Business Law § 340.1

For the agreement to be illegal, there must be clearly unreasonable restraints and there...

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