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Antitrust Keyed to Areeda, 8th Ed.
Klor’s Inc. v. Broadway-Hale Stores, Inc.
Citation:
359 U.S. 207 (1959)Facts
Klor’s operated a retail store on Mission Street in San Francisco, selling household appliances such as radios, televisions, and refrigerators. Broadway-Hale, a large department store chain, operated a store next door and competed with Klor’s in selling the same types of products. Klor’s alleged that Broadway-Hale used its “monopolistic” buying power to orchestrate a conspiracy with ten major appliance manufacturers and their distributors (including General Electric, RCA, Admiral, Zenith, and Emerson) to either refuse to sell to Klor’s entirely or to sell only at discriminatory prices and unfavorable terms. This concerted action allegedly damaged Klor’s ability to compete, causing significant losses in profits, goodwill, reputation, and prestige. The defendants did not dispute these allegations but argued that no Sherman Act violation existed because hundreds of other retailers in the area sold the same brands and products.
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