Please read the case below and answer in the following format: 1) Relevant Law 2

Question

Please read the case below and answer in the following format: 1) Relevant Law 2) Conclusion - the outcome, and why.

The book for this course is Business Law with UCC application - 14th edition

The case is the following one:

Topco Associates, Inc., is a cooperative association of small and medium-sized regional supermarket chains. Each of its member chains operates independently. All members are required to operate under exclusive territorial licenses issued by Topco . These licenses provide that members will sell Topco -controlled brands only within the marketing territory given them. The government filed suit in federal district court. It argued that this scheme of dividing markets among competing chains violated the Sherman Antitrust Act because it prohibited compe tition in Topco -brand pro d ucts among grocery chains engaged in retail operations. Topco d e fended by arguing that the association actually increased competition between the smaller and the larger chains. Was Topco co r rect? Defend your

answer. United States v. Topco Associates, Inc., 92 S.Ct . 1126 (U.S. Sup. Ct.).

Explanation / Answer

1) Relevant Law

“Sherman Anti Trust act which states enacted in the United States of America to curb concentration of power and that interferes with normal trade and reduces competition.”   It outlawed monopolies and cartels.

2) Conclusion - the outcome, and why.               

“The district court agreed with Topco and upheld its practices as reasonable and pro competitive.”

The court judged as follows:

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