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Antitrust Keyed to Sullivan, 8th Ed.
Perma Life Mufflers, Inc. v. International Parts Corp.
Citation:
392 U.S. 134 (1968)Facts
International Parts Corp. manufactured automobile mufflers and in 1955 initiated a nationwide franchise plan through its subsidiary Midas, Inc. Prospective dealers were offered standardized sales agreements obligating them to purchase all mufflers and exhaust parts exclusively from Midas, sell at fixed resale prices, honor Midas guarantees, carry the complete Midas product line, and refrain from dealing with competitors. In return, dealers received exclusive territorial rights and permission to use the Midas trademark. Petitioners alleged they repeatedly requested elimination of these restrictions but Midas refused and threatened termination. One plaintiff’s agreement was canceled for purchasing from competitors. Plaintiffs sought treble damages for losses from complying with these allegedly illegal restrictive provisions that violated the Sherman Act and Clayton Act.
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