Alabama

• Pages: 48-122

Chapter 2

for the

STATE OF ALABAMA

Updated and Revised by

Linda Friedman, Esq.

John W. Rea, Esq.

Bradley Arant Boult Cummings LLP

Birmingham, Alabama

The Section of Antitrust Law thanks James M. Steinwinder, Assistant Attorney

General, Alabama Attorney General’s Office, for his review of this chapter.

The Section gratefully acknowledges Keith Covington, Esq., Michael E. DeBow,

Esq., John Neiman, Esq., Ann Marie Seibel, Esq., and Robert Ware, Esq. for their

work on this chapter in prior editions.

Alabama 2-iii

CONTENTS

1.Introduction ................................................................................................... 1

1.a.Overview.......................................................................................... 1

2.The Per Se Rule and the Rule of Reason ....................................................... 3

3.Horizontal Agreements Other Than Group Boycotts .................................... 4

3.a.Price Fixing ...................................................................................... 4

3.b.Market Allocation ............................................................................ 6

3.c.Customer Allocation ........................................................................ 6

3.d.Bid Rigging...................................................................................... 6

3.e.Covenants Not toCompete .............................................................. 8

4.Group Boycotts.............................................................................................. 9

4.a.Concerted Refusals to Deal .............................................................. 9

4.b.Expulsion or Exclusion from Membership in Trade

Associations or Other Groups ........................................................ 10

5.Resale Price Maintenance............................................................................ 10

5.a.Generally........................................................................................ 10

5.b. Monsanto Rule ............................................................................... 11

5.c.Impact of Leegin ............................................................................ 11

6.Nonprice Vertical Restraints–Intrabrand..................................................... 11

7.Nonprice Vertical Restraints–Interbrand..................................................... 12

8.Tying Arrangements .................................................................................... 13

9.Dual Distribution ......................................................................................... 14

10.Intracorporate Conspiracy............................................................................ 14

11.Monopolization............................................................................................ 14

11.a.Monopolization.............................................................................. 14

11.b.Attempts to Monopolize................................................................. 16

11.c.Monopoly Leveraging.................................................................... 16

11.d.Predatory Pricing............................................................................ 16

11.e.Conspiracy to Monopolize ............................................................. 17

12.Mergers........................................................................................................ 17

13.Discrimination & Other Single-Firm Pricing Regulation............................ 17

13.a.Price Discrimination ...................................................................... 17

13.a.1.Territorial orLocality Discrimination......................... 17

13.a.2.BuyerLiability ............................................................ 18

13.a.3.Meeting Competition Defense .................................... 18

13.a.4.Functional Classifications ........................................... 19

13.a.5.P reemption .................................................................. 19

13.a.6.O ther Defenses and Exemptions................................. 19

13.a.7.Brokerage .................................................................... 19

13.a.8.Secret P ayments or Allowances.................................. 19

13.a.9.P romotional Allowances and Services........................ 20

13.a.10.SalesBelow Cost and Loss Leaders............................ 20

13.b.Price Gouging and MinimumPricing Statutes............................... 20

13.c.Specific Industry Rules ..................................................................21

13.c.1.A lcohol and Beverages ............................................... 21