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Antitrust Keyed to Morgan, 7th Ed.
White Motor Co. v. United States
Citation:
372 U.S. 253 (1963)Facts
White Motor Company manufactured trucks and sold them through a network of distributors and dealers. The company’s contracts with distributors and dealers contained two key restrictions: (1) territorial clauses limiting sales to specified geographic areas, and (2) customer clauses prohibiting sales to certain customers, particularly government entities and national accounts, which White reserved for itself. White argued these restrictions were necessary to compete effectively against larger truck manufacturers, claiming that the distributor/dealer system was the only feasible method for a company of its size. The company contended that territorial restrictions ensured distributors would focus on competing with other truck brands rather than with each other, while customer restrictions allowed White to directly serve accounts requiring specialized handling. The government challenged these arrangements as per se violations of the Sherman Act, and the District Court granted summary judgment without a trial, finding both types of restrictions illegal per se.
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