Research #1

Research #1 - contract of their agreement and stating that...

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This assignment is due on Monday, February 14, 2011. Print out this page with your name, seat number and answer. Bring the printed out copy to Business Forum and place it in front before class begins. The question below is based on the following WSJ article: Ruling Lets Starbucks Take Over Packaged-Coffee Distrubution by: Paul Ziobro Jan 28, 2011 What specific legal issue was decided by the court in this article? What was the holding? What was the court's reasoning behind this decision? For the past twelve years, Kraft Foods Inc. has been the principal distributor of Starbucks’ packaged coffee. In November of last year, Starbucks announced that they wanted to opt out of the agreement between the two companies and planned on beginning their own distribution on March 1 st . Kraft filed an injunction to prevent Starbucks from distributing their own packaged coffee, citing that Starbucks must follow the break-up process established in the
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Unformatted text preview: contract of their agreement and stating that if Starbucks distributed their coffee by themselves, Kraft would suffer irreversible damage and would be at a competitive disadvantage. The federal court denied the injunction because Starbucks had given plenty of notice about their intent to opt out of the agreement and instead of preparing for the separation, Kraft had spent their resources on delaying it through courts. Judge Seibel said that Kraft was going to lose Starbucks either way and should have been preparing for the loss of that business. Furthermore, the judge ruled that the irreparable harm Kraft predicts they will suffer due to the separation is too speculative. Though this is a victory for Starbucks, Starbucks is expected to owe Kraft a large fee to end the contract....
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