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Antitrust Keyed to Areeda, 8th Ed.
Allied Tube & Conduit Corp. v. Indian Head, Inc.
Citation:
486 U.S. 492 (1998)Facts
The National Fire Protection Association (NFPA), a private voluntary organization with over 31,500 members, publishes the National Electrical Code (NEC), which establishes requirements for electrical wiring systems. The Code is widely adopted into law by state and local governments with little or no change. In 1980, Indian Head began offering PVC electrical conduit and initiated a proposal to include it as an approved material in the 1981 NEC. Allied Tube, the nation’s largest steel conduit producer, viewed this as a competitive threat and organized a strategy with other steel interests to defeat the proposal. They collectively recruited 230 new NFPA members (155 by Allied alone), paid over $100,000 for their membership and attendance expenses, and instructed them how to vote at the annual meeting. These new members had minimal technical knowledge about the issues, were given specific seating instructions, and none spoke at the meeting. With their coordinated opposition, the proposal was defeated by just four votes (394-390). Indian Head sued, alleging Sherman Act violations, and a jury found Allied liable for unreasonably restraining trade.
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