Using the dampening-of-competition approach to understanding vertical relationships (Rey and Stiglitz [1988], Bonnano and Vickers [1988], Lin [1988], etc.), this paper shows that, in the absence of intra-brand retailer competition, firms earn greater profits using exclusive dealing. The paper explains the frequent simultaneous appearance of exclusive dealing and exclusive territoriality. The results are used to analyse the famous 1949 Standard Stations case. I conclude that the 1949 Court did the right thing for a wrong reason.