findlaw us opinions state oil khan argued october decided november albrecht herald per se albrecht held albrecht overruled pp although antitrust claims analyzed rule reason reviews number relevant factors see arizona maricopa county medical types restraints trade predictable pernicious anticompetitive effect limited potential procompetitive benefit deemed unlawful per se see northern pacific review pertinent decisions relevant assessing continuing validity albrecht per se rule see joseph seagram sons maximum resale price fixing illegal per se arnold schwinn vertical nonprice restrictions illegal per se continental gte sylvania overruling schwinn number later decisions hinted albrecht analytical underpinnings substantially weakened gte sylvania see maricopa county supra liquor duffy atlantic richfield usa petroleum considerable body scholarship discussing procompetitive effects vertical maximum price fixing pp informed foregoing decisions scholarship guided general view antitrust laws primary purpose protect interbrand competition see business electronics sharp electronics condemnation practices resulting lower consumer prices disfavored matsushita elec industrial zenith radio finds difficult maintain verticallyimposed maximum prices harm consumers competition extent necessary justify per se invalidation albrecht theoretical justifications per se vertical maximum price fixing interfere dealer freedom restrict dealers ability offer consumers essential desired services channel distribution large dealers disguise minimum price fixing abundantly criticized appropriately recognized punished rule reason less serious albrecht imagined courts antitrust scholars noted per se rule fact exacerbate problems related unrestrained exercise market power reasons albrecht irrelevant ongoing sherman act enforcement see copperweld independence tube apparently cases enforcement efforts directed solely conduct condemned albrecht insufficient economic justification per se rule respondents arguments favor elimination require persuasive expert testimony establishing distorted market retention compelled toolson new york yankees flood kuhn unavailing pp albrecht deserve continuing respect doctrine stare decisis stare decisis inexorable command particularly area antitrust law competing interest recognizing adapting changed circumstances lessons accumulated experience see national soc pro fessional engineers accordingly reconsidered decisions construing sherman act theoretical underpinnings decisions called serious question see continental gte sylvania albrecht widely criticized since inception views underlying eroded precedent much decision salvage see neal overruling albrecht hold vertical maximum price fixing per se lawful simply evaluated rule reason effectively identify situations amounts anticompetitive conduct question whether respondents entitled recover damages light overruling albrecht reviewed appeals first instance pp vacated remanded delivered opinion unanimous notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press state oil company petitioner barkat khan andkhan associates writ certiorari appeals seventh circuit november sherman act stat amended contract combination conspiracy restraint trade illegal albrecht herald held vertical maximum price fixing per se violation statute case asked reconsider decision light subsequent decisions conclude albrecht overruled respondents barkat khan corporation entered agreement petitioner state oil company lease operate gas station convenience store owned state oil agreement provided respondents obtain station gasoline supply state oil price equal suggested retail price set state oil less margin cents per gallon agreement respondents charge amount gasoline sold station customers price charged higher state oil suggested retail price excess rebated state oil respondents sell gasoline less state oil suggested retail price decrease reduce margin year respondents began operating gas station fell behind lease payments state oil gave notice intent terminate agreement commenced state proceeding evict respondents state oil request state appointed receiver operate gas station receiver operated station several months without subject price restraints respondents agreement state oil according respondents receiver obtained overall profit margin excess cents per gallon lowering price gasoline raising price premium grades respondents sued state oil district northern district illinois alleging part state oil engaged price fixing violation sherman act preventing respondents raising lowering retail gas prices according complaint agreement state oil respondents charged different prices based grades gasoline way receiver thereby achieving increased sales profits state oil responded agreement actually prevent respondents setting gasoline prices substance respondents allege violation antitrust laws claim state oil suggested retail price optimal district found allegations complaint state per se violation sherman act establish sort manifestly anticompetitive implications pernicious effect competition justify per se prohibition state oil conduct app subsequently ruling cross motions summary judgment district concluded respondents failed demonstrate antitrust injury harm competition app pet cert district held respondents shown difference gasoline pricing increased station sales shown state oil market power pricing provisions affected competition relevant market id accordingly district entered summary judgment state oil respondents sherman act claim id appeals seventh circuit reversed first noted agreement respondents state oil indeed fix maximum gasoline prices making worthless respondents exceed suggested retail prices id reviewing legal economic aspects price fixing concluded state oil pricing scheme per se antitrust violation albrecht herald supra although appeals characterized albrecht unsound decided inconsistent later decisions felt constrained follow decision light albrecht atlantic richfield usa petroleum arco found respondents suffered antitrust injury able adjust gasoline prices granted certiorari consider two questions whether state oil conduct constitutes per se violation sherman act whether respondents entitled recover damages based conduct ii although sherman act terms prohibits every agreement restraint trade long recognized congress intended outlaw unreasonable restraints see arizona maricopa county medical citing joint traffic consequence antitrust claims analyzed rule reason according finder fact must decide whether questioned practice imposes unreasonable restraint competition taking account variety factors including specific information relevant business condition restraint imposed restraint history nature effect citing board trade chicago types restraints however predictable pernicious anticompetitive effect limited potential procompetitive benefit deemed unlawful per se northern pacific per se treatment appropriate nce experience particular kind restraint enables predict confidence rule reason condemn maricopa county supra see also broadcast music columbia broadcasting system thus expressed reluctance adopt per se rules regard restraints imposed context business relationships economic impact certain practices immediately obvious ftc indiana federation dentists review decisions leading beyond albrecht relevant assessment continuing validity per se rule established albrecht beginning dr miles medical john park sons recognized illegality agreements manufacturers suppliers set minimum resale prices charged distributors broadly declared business combinations formed purpose effect raising depressing fixing pegging stabilizing price commodity interstate foreign commerce illegal per se oil accordingly condemned agreement two affiliated liquor distillers limit maximum price charged retailers joseph seagram sons noting agreements fix maximum prices less fix minimum prices cripple freedom traders thereby restrain ability sell accordance judgment id subsequent cases attention turned arrangements suppliers imposed restrictions dealers respect matters resale price white motor considered validity manufacturer assignment exclusive territories distributors dealers determined little known competitive impact vertical limitations warrant treating per se unlawful id four years later arnold schwinn reconsidered status exclusive dealer territories held upon transfer title goods distributor supplier imposition territorial restrictions distributor obviously destructive competition constitute per se violation sherman act id schwinn acknowledged vertical restrictions conferral territorial rights franchises procompetitive benefits allowing smaller enterprises compete restrictions might avert vertical integration distribution process id drew line however permitting manufacturers control product marketing dominion goods passed dealers id albrecht decided following term involved newspaper publisher granted exclusive territories independent carriers subject adherence maximum price resale newspapers public influenced decisions kieferstewart schwinn concluded per se unlawful publisher fix maximum resale price newspapers acknowledged aximum minimum price fixing may different consequences many situations nonetheless condemned maximum price fixing substituting perhaps erroneous judgment seller forces competitive market id albrecht animated part fear vertical maximum price fixing allow suppliers discriminate certain dealers restrict services dealers afford offer customers disguise minimum price fixing schemes id rejected notion record case abstract newspaper publisher granted exclusive territories price ceiling necessary protect public price gouging dealers monopoly power territories id vigorous dissent justice harlan asserted majority erred equating effects maximum minimum price fixing id harlan dissenting justice harlan pointed majority establishing per se rule proper inquiry whether dictation maximum prices ever illegal whether always illegal id also faulted majority conclusively listing certain unfortunate consequences maximum price dictation might cases even rejected evidence publisher practice fixing maximum prices counteracted potentially anticompetitive actions distributors id justice stewart also dissented asserting publisher maximum price fixing scheme properly viewed promoting competition protected consumers dealers albrecht person sell home delivery city daily morning newspaper monopolist within territory id stewart dissenting nine years later continental gte sylvania overruled schwinn thereby rejecting application per se rule context vertical nonprice restrictions acknowledged principle stare decisis explained need clarification law justified reconsideration schwinn since announcement schwinn subject continuing controversy confusion scholarly journals federal courts great weight scholarly opinion critical decision number federal courts confronted analogous vertical restrictions sought limit reach view experience past years brought bear subject considerable commercial importance footnotes omitted considered historical context schwinn noting schwinn per se rule vertical nonprice restrictions came four years refused endorse similar rule white motor decision neither explained sudden change position referred accepted requirements per se violations set forth northern pacific reviewed scholarly works sup porting economic utility vertical nonprice restraints see id citing posner antitrust policy analysis restricted distribution horizontal merger potential competition decisions colum rev preston restrictive distribution arrangements economic analysis public policy standards law contemp prob concluded departure standard must based upon demonstrable economic effect rather schwinn upon formalistic line drawing appropriate course return rule reason governed vertical restrictions prior schwinn gte sylvania supra gte sylvania declined comment albrecht per se treatment vertical maximum price restrictions noting issue involve significantly different questions analysis policy subsequent decisions however hinted analytical underpinnings albrecht substantially weakened gte sylvania noted maricopa county vertical restraints generally defensible horizontal restraints see explained liquor duffy decisions gte sylvania recognize possibility vertical restraint imposed single manufacturer wholesaler may stimulate interbrand competition even reduces intrabrand competition recently arco although albrecht continuing validity squarely disfavor decision signaled statement assume arguendo albrecht correctly held vertical maximum price fixing subject per se rule significantly specifically acknowledged vertical maximum price fixing may procompetitive inter brand effects pointed wake gte sylvania procompetitive potential vertical maximum price restraint evident albrecht decided exclusive territorial arrangements nonprice restrictions unlawful per se citing several commentators identifying procompetitive effects vertical maximum price fixing including areeda hovenkamp antitrust law supp blair harrison rethinking antitrust injury vand rev easterbrook maximum price fixing chi rev thus reconsideration albrecht continuing validity informed several decisions well considerable body scholarship discussing effects vertical restraints analysis also guided general view primary purpose antitrust laws protect interbrand competition see business electronics sharp electronics low prices explained benefit consumers regardless prices set long predatory levels threaten competition arco supra interpretation sherman act also incorporates notion condemnation practices resulting lower prices consumers especially costly cutting prices order increase business often essence competition matsushita elec industrial zenith radio informed find difficult maintain maximum prices harm consumers competition extent necessary justify per se invalidation chief judge posner wrote appeals case maximum resale price fixing unless supplier monopsonist squeeze margins competitive level attempt drive dealers arms competing supplier supplier might however fix maximum resale price order prevent dealers exploiting monopoly position uppose state oil perhaps encourage dealer ices spaced dealers sufficiently far apart limit competition among even given exclusive territory suppose union sufficiently distinctive popular brand give dealers least modicum monopoly power state oil might want place ceiling dealers resale prices order vent exploiting monopoly power fully disinterested malice commercial higher price gasoline resold smaller volume sold lower profit supplier higher profit per gallon higher price snared dealer see also bork antitrust paradox course anticonsumer effect type price fixing considered albrecht one suspects paper legitimate interest keeping subscriber prices order increase circulation maximize revenues advertising recognize albrecht decision presented number theoretical justifications per se rule vertical maximum price fixing criticism premises abounds albrecht decision grounded fear maximum price fixing suppliers interfere dealer freedom response one commentator pointed ban maximum resale price limitations declared albrecht name freedom actually prompted many suppliers integrate forward distribution thus eliminating independent trader albrecht professed solicitude areeda antitrust law example integration newspaper industry since albrecht given rise litigation independent distributors publishers see areeda hovenkamp antitrust law pp albrecht also expressed concern maximum prices may set low dealers offer consumers essential desired services conduct driving away customers seem likely harm manufacturers well dealers consumers making unlikely supplier set price matter business judgment see lopatka stephen breyer modern antitrust snug fit antitrust bull blair lang albrecht arco maximum resale price fixing moves toward rule reason vand rev addition albrecht noted vertical maximum price fixing effectively channel distribution large dealers unclear however supplier profit limiting market excluding potential dealers see easterbrook supra although vertical maximum price fixing might limit viability inefficient dealers consequence necessarily harmful competition consumers see easterbrook supra lopatka supra finally albrecht reflected fear maximum price fixing used disguise arrangements fix minimum prices remain illegal per se although acknowledged possibility maximum pricing might mask minimum pricing see maricopa county believe concerns articulated albrecht appropriately recognized punished rule reason see easterbrook chi see also pitofsky defense discounters case per se rule vertical price fixing geo potential injuries cited albrecht less serious imagined per se rule established therein fact exacerbate problems related unrestrained exercise market power monopolistdealers indeed courts antitrust scholars noted albrecht rule may actually harm consumers manufacturers see caribe bmw bayerische motoren werke aktiengesellschaft breyer areeda supra mathewson winter competition policy vertical exchange commentators also explained albrecht per se rule even potential deleterious effect competition decision gte sylvania vertical nonprice restrictions unlawful per se likelihood dealer monopoly power increased see easterbrook supra see also arco intend suggest dealers generally possess sufficient market power exploit monopoly situation retail market power may fact uncommon see business electronics gte sylvania hold ban vertical maximum price fixing inevitably anticompetitive consequences exclusive dealer context reconsidering albrecht rationale substantial criticism decision received however conclude insufficient economic justification per se invalidation vertical maximum price fixing difficult accept assumptions underlying albrecht also albrecht little relevance ongoing enforcement sherman act see copperweld independence tube moreover neither parties amici curiae called attention cases enforcement efforts directed solely conduct encompassed albrecht per se rule respondents argue reconsideration albrecht require persuasive expert testimony establishing per se rule distorted market brief respondents reasoning ignores fact albrecht relied solely upon hypothetical effects vertical maximum price fixing albrech dire predictions borne even though manufacturers suppliers appear fashioned schemes get around per se rule vertical maximum price fixing circumstances retention rule albrecht respondents rule elimination lacks adequate justification see gte sylvania supra respondents reliance toolson new york yankees per curiam flood kuhn similarly misplaced decisions clearly inapposite antitrust exemption professional baseball described aberration rest ing recognition acceptance baseball unique characteristics needs id context case infer little meaning fact congress reacted legislatively albrecht event history various legislative proposals regarding price fixing seems neither clearly support denounce per se rule albrecht respondents course free seek legislative protection gasoline suppliers sort embodied petroleum marketing practices act stat et seq reasons noted however remedy respondents dispute state oil come form per se rule affecting conduct entire marketplace despite chief judge posner aptly described albrecht infirmities increasingly wobbly foundations remains question whether albrecht deserves continuing respect doctrine stare decisis appeals correct applying principle despite disagreement albrecht prerogative alone overrule one precedents approach reconsideration decisions utmost caution stare decisis reflects policy judgment matters important applicable rule law settled settled right agostini felton slip quoting burnet coronado oil gas brandeis dissenting preferred course promotes evenhanded predictable consistent development legal principles fosters reliance judicial decisions contributes actual perceived integrity judicial process payne tennessee expressed reluctance overrule decisions involving statutory interpretation see illinois brick illinois acknowledged stare decisis concerns acme cases involving property contract rights see payne concerns arguably relevant case tare decisis inexorable command ibid area antitrust law competing interest decisions recognizing adapting changed circumstances lessons accumulated experience thus general presumption legislative changes left congress less force respect sherman act light accepted view congress expected courts give shape statute broad mandate drawing tradition national soc professional engineers explained term restraint trade used also invokes common law merely static content common law assigned term business electronics see also gte sylvania mcnally stevens dissenting accordingly reconsidered decisions construing sherman act theoretical underpinnings decisions called serious question see copperweld supra gte sylvania supra tigner texas although lightly assume economic realities underlying earlier decisions changed earlier judicial perceptions realities error noted different sorts agreements may amount restraints trade varying times circumstances make sense create single term trade chronologically schizoid statute reason evolves new circumstances new wisdom line per se illegality remains forever fixed business electronics supra schwinn subject continuing controversy confusion great weight scholarly criticism gte sylvania supra albrecht widely criticized since inception views underlying albrecht eroded precedent much decision salvage see neal patterson mclean credit union rodriguez de quijas american express although rule albrecht effect time inquiry must undertake requires considering effect antitrust laws upon vertical distributional restraints american economy today gte sylvania supra quoting schwinn stewart concurring part dissenting part noted arco another case since albrecht confronted unadulterated vertical arrangement confront albrecht directly find conceptual foundations gravely weakened overruling albrecht course hold vertical maximum price fixing per se lawful instead vertical maximum price fixing like majority commercial arrangements subject antitrust laws evaluated rule reason view analysis effectively identify situations vertical maximum price fixing amounts anticompetitive conduct remains question whether respondents entitled recover damages based state oil conduct although appeals noted district judge right conclude rule reason applicable khan loses consideration case necessarily premised albrecht per se rule circumstances matter reviewed appeals first instance therefore vacate judgment appeals remand case proceedings consistent opinion ordered