Federal Antitrust Law-Sherman Act-Resale Restrictions in Agreements Between Manufacturer and Distributors

Defendant, a manufacturer of heavy trucks, entered into agreements with its wholesale distributors and retail dealers whereby the distributors and dealers agreed to resell defendant's trucks at prices fixed by defendant. They also agreed to restrict their sales to customers located within the territories designated by defendant and to allow defendant to deal directly with all government accounts. The Justice Department, charging violation of sections I and 3 of the Sherman Act, brought a civil suit to enjoin defendant from continuing or renewing any of the aforementioned arrangements. On plaintiff's motion for summary judgment, held, motion granted.

Vertical agreements involving resale price maintenance and the allocation of territories and customers are unreasonable per se violations of the Sherman Act. United States v. White Motor Co., 194 F. Supp. 562 (N.D. Ohio 1961), jurisdiction noted, 82 Sup. Ct.

946 (1962).