Alabama. Practice Text

CHAPTER 2

for the

STATE OF ALABAMA

Updated and Revised by

Michael S. Denniston, 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., Linda A. Friedman, Esq., John Neiman, Esq., John W. Rea, 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 .................................... 5

3.a.Price Fixing ....................................................................................... 5

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

3.c.Customer Allocation ......................................................................... 7

3.d.Bid Rigging ....................................................................................... 7

3.e.Covenants Not to Compete ............................................................... 8

4.Group Boycotts ............................................................................................ 10

4.a.Concerted Refusals to Deal ............................................................. 10

4.b.Expulsion or Exclusion from Membership in Trade

Associations or Other Groups ......................................................... 11

5.Resale Price Maintenance ............................................................................ 11

5.a.Generally ......................................................................................... 11

5.b.Monsanto Rule ................................................................................ 12

5.c.Impact of Leegin ............................................................................. 12

6.Nonprice Vertical Restraints–Intrabrand ..................................................... 12

7.Nonprice Vertical Restraints–Interbrand ..................................................... 13

8.Tying Arrangements .................................................................................... 14

9.Dual Distribution ......................................................................................... 15

10.Intracorporate Conspiracy............................................................................ 16

11.Monopolization ............................................................................................ 16

11.a.Monopolization ............................................................................... 16

11.b.Attempts to Monopolize .................................................................. 18

11.c.Monopoly Leveraging ..................................................................... 18

11.d.Predatory Pricing ............................................................................. 18

11.e.Conspiracy to Monopolize .............................................................. 19

12.Mergers ........................................................................................................ 19

13.Discrimination & Other Single-Firm Pricing Regulation ............................ 20

13.a.Price Discrimination ....................................................................... 20

13.a.1.Territorial or Locality Discrimination ......................... 20

13.a.2.Buyer Liability ............................................................ 20

13.a.3.Meeting Competition Defense .................................... 20

13.a.4.Functional Classifications ........................................... 21

13.a.5.Preemption .................................................................. 21

13.a.6.Other Defenses and Exemptions ................................. 21

13.a.7.Brokerage .................................................................... 22

13.a.8.Secret Payments or Allowances .................................. 22

13.a.9.Promotional Allowances and Services ........................ 22

13.a.10.Sales Below Cost and Loss Leaders............................ 22

13.b.Price Gouging and Minimum Pricing Statutes ................................ 22

13.c.Specific Industry Rules ................................................................... 24

13.c.1.Alcohol and Beverages ............................................... 24