LAW 642 Lecture Notes - Lecture 54: Schwinn Bicycle Company, Treble Damages, Market Power
30 May 2020
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Restraints on distributors other than minimal resale pricing free traders to free riders: customer and the territorial restraints and maximum resale price-fixing (earlier law, the turning of the tide, non-price restraints. Territorial division: bike manufacturer split up territory between its retailers, disallowing them from treading on one another"s turf and sales to other retailers. Eliminates per se rule against territorial division: here, it they just allowed intraterritorial competition between retailers, but just limited the amount of competition, by limiting the number of retailer franchises in a given market area. Court takes explicit note that this difference is immaterial. Albrecht: per se illegal to fix maximum prices (overruled by khan in 1997 (p. 612)): Courts had previously worried that maximums would really become minimums, facilitating a cartel. But khan court holds that such intentions are not the dominant reasons for maximum prices, eliminating per se illegality.
