Dr. Miles Medical Co. v. John D. Park & Sons Co. (1911)

1. Dr. Miles Medical Co. v. John D. Park & Sons Co. (1911) Basic Facts: Dr. Miles sold medicines through 400 jobbers and 25k retailers, specified price for products and required wholesalers to sell only to authorized dealers. Park acquired medicines cheap and sold at discount. Dr. Miles sued on interference with contract, and Park claimed restrains illegal under antitrust. What was Dr. Miles secret process argument? Any validity? Does right to sell or not sell confer right to impose conditions on sale? What is restrain on alienation? What business justification would Dr. Miles have for fixing resale price? Law 552 - Antitrust - Instructor: Dwight Drake

2. California Retail Liquor Dealers Ass’n v. Midcal Aluminum, Inc. (Sup. Ct. 1980) Basic Facts: Cal. Statute prohibited wine wholesalers from selling below posted prices. Violators fined and lost license to sell. Violator sued for injunction. Cal. Ct of App. held scheme violated Sherman Act. Retailers, desiring price protection, appealed to Sup. Ct. What was argument for state immunity under Parker v. Brown? Why did immunity claim fail? What was 21st Amendment argument? Did state’s policy protect retailers or reduce consumption of alcohol? How did state’s interest compare with national interest of competition under Sherman Act? Law 552 - Antitrust - Instructor: Dwight Drake

3. United States v. Colgate & Co. (Sup. Ct. 1919) Basic Facts: Colgate set uniform prices for products, gathered data on dealers who did not adhere to uniform prices, and terminated business with such dealers. Dist. Ct. quashed indictment. Was there any agreement? Did Colgate demand agreement that retailers honor uniform prices? Is Court’s decision consistent with Dr. Miles? As to Colgate, if no monopoly issue, a manufacturer is free to exercise discretion as to whom he will deal. Law 552 - Antitrust - Instructor: Dwight Drake

4. United States v. Parke, Davis & Co. (1960) Basic Facts: Park Davis, large manufacturer and seller of pharmaceuticals, published minimum price list, actively secured consent of big retailers, then cut off all those who didn’t follow pricing guidelines. Program forced compliance by all parties. Why did Parker fall outside of “limited dispensation” of Colgate? Was there much of Colgate left after Parker? How would you advise Client? As to Parker, Ct. said product comes in “competition free wrapping – by virtue of concerted action induced by the manufacturer. The manufacturer is thus the organizer of a price-maintenance combination or conspiracy in violation of the Sherman Act.” Law 552 - Antitrust - Instructor: Dwight Drake

5. Monsanto Co. v. Spray-Rite Service Corp. (1984) Basic Facts: Monsanto, with 15% share of herbicide market, terminated distributor agreement with Spray-Rite, a wholesale distributor who bought large quantities and sold at discount. Spray-Rite alleged Sherman 1 violation. What program had Monsanto adopted? Was Spray-Rite big Monsanto distributor? How important was Monsanto to Spray-Rite? What was basis of Spray-Rite’s Sherman 1 claim? What had jury decided? What was alleged error on appeal? Law 552 - Antitrust - Instructor: Dwight Drake