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Antitrust - Resale Price Maintenance - Legality Of Fair Trade Contracts Made By Integrated Firm, John A. Ziegler S.Ed.

Michigan Law Review

Defendant-appellee manufactures its own brand-name line of drug products and is also the largest drug wholesaler in the United States. Its manufactured products are sold through appellee's own wholesale division and to independent wholesalers and retailers. In 1951 appellee entered into resale price maintenance contracts with these independent wholesalers, most of whom competed with appellee's wholesale divisions. The Government then brought an action for an injunction under section 4 of the Sherman Act, restraining the further use of resale price contracts by appellee on the ground that these contracts constituted illegal price fixing under section 1 of the act. The …