New Concepts in Customer and Territorial Restrictions—The Schwinn and Sealy Doctrines

Recent Supreme Court decisions in United States v. Arnold, Schwinn & Company and United States v. Sealy, Incorporated have raised new questions concerning the legality of customer and territorial restrictions imposed on dealers, distributors, franchisees, and licensees by manufacturers. In this article the author analyzes these cases and concludes that attacks on customer and territorial restrictions will be more effective in the future and, to avoid government prosecution and treble damage actions by private litigants, businessmen and lawyers should be cautious in the use of such restraints.