Opinion

United States v. Topco Associates, Inc.

  • 405 U.S. 596
  • 173 U.S.P.Q. (BNA) 193
  • 1972 Trade Cas. (CCH) 73,904
  • 92 S. Ct. 1126
  • 31 L. Ed. 2d 515
Court
Supreme Court of the United States
Filed
Mar 29, 1972
Status
Published
Author
Blackmun
On the bench
Blackmun, Marshall, Douglas, Brennan, Stewart, White, Blacemun, Burger, Powell, Rehjst-Quist
Cited by
699 cases

stating that, if Section 1 of the Sherman Act were “to be read in the narrowest possible way, any commercial contract could be deemed to violate it” since “[t]heoretically, all manufacturers, distributors, merchants, sellers, and buyers could be considered as potential competitors of each other”

How later courts described this case

  • stating that, if Section 1 of the Sherman Act were “to be read in the narrowest possible way, any commercial contract could be deemed to violate it” since “[t]heoretically, all manufacturers, distributors, merchants, sellers, and buyers could be considered as potential competitors of each other”
  • explaining that "the freedom to compete ... cannot be foreclosed with respect to one sector of the economy because certain private citizens or groups believe that such foreclosure might promote greater competition in a more important sector of the economy”
  • holding that “[bjorizontal territorial limitations ... are naked restraints of trade with no purpose except stifling of competition” and are “per se violations of the Sherman Act”
  • holding that “an agreement between competitors at the same level of the market structure to allocate territories in order to minimize competition” is a per se violation

Written by the judges who cited it.

Distinguished

  • Distinguished by Krehl v. Baskin-Robbins Ice Cream Co., 78 F.R.D. 108 (1978)

    Defendants contend that Sealey and the similar holding in United States v. Topco Associates, Inc., 405 U.S. 596, 92 S.Ct. 1126, 31 L.Ed.2d 515 (1972) are inapposite since the area franchisees do not own or control BRICO and it is BRICO that makes the territorial allocations.
    District Court, C.D. CaliforniaFeb 10, 1978Read it

The opinion

Mr. Justice Blackmun,

concurring in the result.

The conclusion the Court reaches has its anomalous aspects, for surely, as the District Court’s findings make clear, today’s decision in the Government’s favor will tend to stultify Topeo members’ competition with the great and larger chains. The bigs, therefore, should find it easier to get bigger and, as a consequence, reality *613 seems at odds with the public interest. The per se rule, however, now appears to be so firmly established by the Court that, at this late date, I could not oppose it. Relief, if any is to be forthcoming, apparently must be by way of legislation.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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