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Antitrust Keyed to Gavil, 5th Ed.
Volvo Trucks North America, Inc. v. Reeder-Simco GMC, Inc.
Citation:
546 U.S. 164, 126 S.Ct. 860, 163 L.Ed.2d 663 (2006)Facts
Volvo manufactures heavy-duty trucks sold through franchised dealers, including Reeder-Simco GMC. The sales process typically involves retail customers soliciting bids from selected dealers based on specific product requirements. When a dealer receives customer specifications, it requests a price concession from Volvo, which decides on a case-by-case basis whether to offer a discount and at what rate. The dealer uses this discount in preparing its bid and only purchases trucks from Volvo if its bid is successful.
Reeder became a Volvo dealer in 1995 under a five-year franchise agreement. In 1997, Volvo announced a “Volvo Vision” program aimed at reducing its dealer network from 146 to 75 dealers. Reeder suspected it was targeted for elimination after learning Volvo had given another dealer better price concessions.
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