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Bus. Electr. Corp. Vs. Sharp Electr. Corp.

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  • US Supreme Court
  • May 02, 1988

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  1. Bus. Electr. Corp. v. Sharp
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  2. Electr. Corp. - 485 U.S. 717 (1988) U.S. Supreme Court Bus. Electr. Corp. v. Sharp
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  3. Electr. Corp., 485 U.S. 717 (1988) Business Electronics Corp. v. Sharp
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  4. must be based on demonstrable economic effect, rather than upon formalistic line drawing. Continental T.V., Inc. v. GTE
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  5. prohibit only unreasonable restraints of trade. National Collegiate Page 485 U. S. 724 Athletic Assn. v. Board
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  6. Standard Oil Co. v. United
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  7. Continental T.V., Inc. v. GTE
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  8. Northwest Wholesale Stationers, Inc. v. Pacific
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  9. Stationery & Printing Co., 472 U. S. 284 , 473 U. S. 289 -290 (1985), quoting Broadcast Music, Inc. v. Columbia
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  10. Broadcasting System, Inc., 441 U. S. 1 , 441 U. S. 19 -20 (1979). See also FTC v. Indiana
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  11. National Collegiate Athletic Assn. v. Board
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  12. National Society of Professional Engineers v. United
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  13. Although vertical agreements on resale prices have been illegal per se since Dr. Miles Medical Co. v. John
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  14. the scope of per se illegality should be narrow in the context of vertical restraints. In Continental T.V., Inc. v. GTE
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  15. as to justify per se illegality. Id. at 220 U. S. 58 , quoting Northern Pacific R. Co. v. United
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  16. market-freeing effect of our decision in GTE Sylvania is not frustrated by related legal rules. In Monsanto Co. v. Spray-Rite
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  17. in the future, obstructs both formation and adherence by making cheating easier. Cf. Maple Flooring Mfrs. Assn. v. United
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  18. Cement Mfrs. Protective Assn. v. United
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  19. Matsushita Electric Industrial Co. v. Zenith
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  20. was well recognized at the time the Sherman Act was enacted. See Gibbs v. Consolidated
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  21. Dr. Miles Medical Co. v. John
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  22. Standard Oil Co. v. United
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  23. McNally v. United
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  24. Associated General Contractors of California, Inc. v. Carpenters
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  25. this Court's understanding of pre-Sherman Act common law, petitioner refers to our decision in Dr. Miles Medical Co. v. John
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  26. resale restriction was an unlawful restraint on alienation. See ibid. As we explained in Boston Store of Chicago v. American
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  27. on alienation, was found by the jury, so the common law rationale of Dr. Miles does not apply. Cf. United States v. General
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  28. S. 734 thus to be per se illegal) though they did not set prices or price levels, see, e.g., Catalano, Inc. v. Target
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  29. as it had to be, since a horizontal agreement to divide territories is per se illegal, see United States v. Topco
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  30. U. S. 608 (1972), while GTE Sylvania held that a vertical agreement to do so is not. See also United States v. Arnold
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  31. White Motor Co. v. United
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  32. our two cases holding per se illegal a group boycott of a dealer because of its price cutting. See United States v. General
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  33. Klor's, Inc. v. Broadway-Hale
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  34. manufacturer and wholesaler levels. Accord, GTE Sylvania, supra, at 433 U. S. 58 , n. 28, United States v. Arnold
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  35. supra, at 372 U. S. 263 . Page 485 U. S. 735 Third, petitioner contends, relying on Albrecht v. Herald
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  36. Co., 390 U. S. 145 (1968), and United States v. Parke
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  37. The Seventh, Eighth, and Tenth Circuits have agreed with the analysis of the Fifth. See Morrison v. Murray
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  38. McCabe's Furniture, Inc. v. La-Z-Boy
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  39. Westman Commission Co. v. Hobart
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  40. cert. pending, No. 86-484. Decisions of the Third and Ninth Circuits have disagreed. See Cernuto, Inc. v. United
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  41. Zidell Explorations, Inc. v. Conval
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  42. power is rare, because of the usual presence of interbrand competition and other dealers, see Continental T.V., Inc. v. GTE
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  43. restraint is an agreement by the seller of a business not to compete within the market. See Mitchel v. Reynolds
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  44. United States v. Addyston
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  45. so that the dissent's line for per se illegality fails to meet the requirement of Continental T.V., Inc. v. GTE
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  46. that legal rules in this area should be designed to avoid. Monsanto Co. v. Spray-Rite
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  47. in Cernuto, Inc. v. United
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  48. has been a part of our law since the landmark opinion written by Judge (later Chief Justice) Taft in United States v. Addyston
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  49. The Rule of Reason suggested by Mitchel v. Reynolds
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  50. U.S. Supreme Court Bus. Electr. Corp. v. Sharp
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