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Antitrust Keyed to Gavil, 5th Ed.
Catalano, Inc. v. Target Sales, Inc.
Citation:
446 U.S. 643, 100 S.Ct. 1925, 64 L.Ed.2d 560 (1980)Facts
Prior to December 1967, beer wholesalers in the Fresno, California area extended credit to retailers without interest up to the 30- and 42-day limits permitted by state law. Credit terms for individual retailers varied substantially, representing a form of competition among wholesalers. Beginning in early 1967, the wholesalers allegedly entered into a secret agreement to eliminate this practice, and as of December 1967, they uniformly refused to extend any credit, requiring payment in advance or upon delivery. The beer retailers brought a class action suit against the wholesalers, claiming this agreement violated Section 1 of the Sherman Act. The wholesalers defended the agreement by arguing it might enhance competition by removing barriers to market entry and increasing price visibility.
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