State Oil Co. v. Khan
Encyclopedia
State Oil Co. v. Khan, 522 U.S. 3
(1997), was a decision by the United States Supreme Court, which “does not hold that all vertical maximum price fixing is per se lawful, but simply that it should be evaluated under the rule of reason, which can effectively identify those situations in which it amounts to anticompetitive conduct.” It thereby overruled a previous Supreme Court decision, Albrecht v. Herald Co.
(1968).
The case before the court involved a gasoline
wholesaler and Chicago service station. State Oil Co. attempted to force the gasoline station owner, Barkat Khan, to sell State Oil's product at certain prices; Khan resisted and filed suit under anti-trust law.
Khan won his case in the United States Court of Appeals
in Chicago
, presided over by Judge Richard Posner
. Posner, however, mocked the Supreme Court's 1968 ruling on the matter in his decision, calling it "unsound when decided," "moth-eaten" and "increasingly wobbly" in application. Posner nevertheless abided by the Court's earlier decision, saying that their decision was the law until the Court overruled its previous decision.
wrote the unanimous opinion for the Court, overturning the previous case. She wrote that she agreed with Posner: “Chief Judge Posner aptly described Albrecht’s infirmities.” Although she noted that the Court was cautious in overturning precedents, the "great weight" of scholarly opinion had held that the Court's 1968 decision was incorrect.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1997), was a decision by the United States Supreme Court, which “does not hold that all vertical maximum price fixing is per se lawful, but simply that it should be evaluated under the rule of reason, which can effectively identify those situations in which it amounts to anticompetitive conduct.” It thereby overruled a previous Supreme Court decision, Albrecht v. Herald Co.
Albrecht v. Herald Co.
Albrecht v. Herald Co., 390 U.S. 145 , was a decision by the United States Supreme Court, which held that wholesalers could not require franchisees and retailers of their products to sell items at a certain price; advertisements regarding sales therefore always included the language "Available at...
(1968).
Background
The 1968 decision held that wholesalers could not require franchisees and retailers of their products to sell items at a certain price; advertisements regarding sales therefore always included the language "Available at participating retailers only."The case before the court involved a gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
wholesaler and Chicago service station. State Oil Co. attempted to force the gasoline station owner, Barkat Khan, to sell State Oil's product at certain prices; Khan resisted and filed suit under anti-trust law.
Khan won his case in the United States Court of Appeals
United States court of appeals
The United States courts of appeals are the intermediate appellate courts of the United States federal court system...
in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, presided over by Judge Richard Posner
Richard Posner
Richard Allen Posner is an American jurist, legal theorist, and economist who is currently a judge on the United States Court of Appeals for the Seventh Circuit in Chicago and a Senior Lecturer at the University of Chicago Law School...
. Posner, however, mocked the Supreme Court's 1968 ruling on the matter in his decision, calling it "unsound when decided," "moth-eaten" and "increasingly wobbly" in application. Posner nevertheless abided by the Court's earlier decision, saying that their decision was the law until the Court overruled its previous decision.
Decision
Sandra Day O'ConnorSandra Day O'Connor
Sandra Day O'Connor is an American jurist who was the first female member of the Supreme Court of the United States. She served as an Associate Justice from 1981 until her retirement from the Court in 2006. O'Connor was appointed by President Ronald Reagan in 1981...
wrote the unanimous opinion for the Court, overturning the previous case. She wrote that she agreed with Posner: “Chief Judge Posner aptly described Albrecht’s infirmities.” Although she noted that the Court was cautious in overturning precedents, the "great weight" of scholarly opinion had held that the Court's 1968 decision was incorrect.
See also
- List of United States Supreme Court cases, volume 522
- List of United States Supreme Court cases
- Lists of United States Supreme Court cases by volume
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