The Peel District School Board (the Board) solicited proposals from two cold beverage companies for a “vending and pouring agreement” for the exclusive provision of soft drink and snack vending machines in the Board’s schools. The two companies submitted proposals in June 1999. After eight months of negotiation, the Board issued a press release on February 22, 2000, which stated that an agreement had been reached with one of the companies (the affected party). The Board and the affected party signed a contract (the Contract) on March 20, 2000.

This type of arrangement is common in public educational institutions throughout North America as a means of raising revenue to cover various costs associated with education delivery. These agreements have recently garnered attention, in particular, due to concerns related to their impact on student health. In the United States (U.S.) the agreements that are reached through a Request for Proposal or tender process are often referred to as “pouring rights contracts”. They have also been referred to as “exclusive sponsorship contracts”, “exclusive vending agreements” and “branding agreements”.