1. Isn't it illegal for the manufacturer to refuse to sell me its
product in my place of business?
Answer:
Generally, no. In United States v. Colgate & Co., 250 U.S. 300, 307 (1919), the
United States Supreme Court held that a company taking unilateral action can refuse its
products to a dealer or individual. However, if the exclusive dealing involves something
more, there may be a cause of action for an unreasonable restraint of trade. For example,
an agreement among competitors to boycott certain businesses, suppliers or dealers can
result in antitrust liability. Klor's Inc. v.Broadway-Hale Stores, Inc., 359 U.S.
207 (1959).
2. Aren't
there minimum pricing laws in West Virginia?
Answer: Yes.
Under the West Virginia Unfair Practices Act, W. Va. Code § 47-11A-1 et seq., a
retailer is obligated to mark up his merchandise by 7% above costs. A wholesaler is
obligated to mark up his merchandise by 4% of the wholesaler's costs. W. Va. Code §
47-11A-6. The term "costs" has more specific definitions in the West Virginia
Code.
It is possible
to price below these levels when the retailer or wholesaler, in good faith, is attempting
to meet the prices of a competitor. W. Va. Code § 47-11A-8. B.F. Specialty Co. v.
Charles M. Sledd Co., 197 W. Va. 463, 475 S.E.2d 555 (1996).
3. Is it
possible for parent and subsidiary companies to conspire when they are separate legal
entities?
Answer:
Generally, no. The U.S. Supreme Court found in Copperweld Corp. v. Independence Tube
Corp., 467 U.S. 752 (1984), that parent and subsidiary companies have a joint economic
interest, and therefore, cannot conspire for purposes of the antitrust laws. Furthermore,
sister subsidiary corporations also cannot conspire under the antitrust laws. Advance
Health-Care Services v. Radford Community Hospital, 910 F.2d 139 (4th Cir. 1990).
4. Aren't
all agreements restraints of trade?
Answer:
Generally, yes. However, all agreements are not unreasonable for the purposes of the
antitrust laws. Standard Oil Co. v. United States, 221 U.S. 1 (1911). Only those
agreements that restrain trade unreasonably are unlawful under the antitrust laws.
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