Conference napalm::commusic_v1

1374.0. "Supreme Court decision against discount retailers" by BENTLY::FARLEE (Juglito Ergo Sum) Wed May 11 1988 14:30

    
    I heard a story on NPR this morning that was more than
    a little disturbing, to say the least.  It seems that there
    has recently been a supreme court decision about discount
    retailers and price fixing.
    
    In the case, Sharp had two distributors in the Houston
    area: one full-price, and one discount.  The full-price outlet
    complained to Sharp about the discount distributor undercutting
    prices, and threatened to pull Sharp's line if they didn't cut
    off the discount distributor.  Sharp pulled the discount
    distributor.  The discount distributor sued Sharp and the
    full-price distributor, claiming conspiracy and price-fixing.
    *THE SUPREME COURT RULED FOR SHARP AND AGAINST THE DISCOUNT HOUSE*
    
    This effectively negates about a century of antitrust legislation
    and court decisions.  It also puts the status of any other
    discount distributors in jeopardy, as precedent has been set that
    manufacturers can lock them out without worry.  
    
    There is also a bill in Congress that would legislatively
    reverse this court decision.  Write your congressman!  It is 
    probably the only thing keeping our favorite discount houses
    in business.
    
    
    This may be a borderline note, and if the Moderators
    feel it is inappropriate, please remove it; however, 
    given the recent discussions re: Roland, Sam Ash, et al
    I think it is relevant.
    
    
    

    There will NOT be a law restricting mail order dealers.
    
    Period.
    
    The ruling in this case is quite possibly based on considerations
    of the suit, for which you have specified no real content.
    
    They might have boggled the suit. Sharp MAY have rights based on
    AGREEMENTS signed by the parties required to become distributors.
    
    Sorry. Not enuf info.
    
    I am not sweating...nor should you. 

    ron. (who does almost exclusive mail order, including MKS-80 @ $695)
    

    

    Yes, it's far from clear that this is an antitrust situation.
    
    If we're missing something, please elaborate.  Our interest in genuine.
    
    	db