Kentucky. Practice Text

Chapter 20

for the

COMMONWEALTH OF KENTUCKY

Updated and Revised by

Mary Anne Mason, Esq.

Doha G. Mekki, Esq.

Louis Suazo

Crowell & Mooring LLP

Washington, D.C.

The Section of Antitrust Law thanks Maryellen Mynear, Assistant Attorney General,

Kentucky Attorney General’s Office, for her review of this chapter in prior editions.

The Section gratefully acknowledges Erika L. Amarante, Esq., Pearson N. Bownas, Esq.,

Joseph B. G. Fay, Esq., Deborah P. Herman, Esq., Caswell O. Hobbs, Esq., Christopher

A. Nowak, Esq., Jonathan W. Paul, Esq., Joe Sims, Esq., David Vandeventer, Esq., and

Joseph F. Winterscheid, Esq. for their work on this chapter in prior editions.

Kentucky 20-iii

CONTENTS

1.Introduction.................................................................................................... 1

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

1.b.Source of Law–Statutes and Other .................................................... 1

1.c.History ............................................................................................... 2

1.d.Relation to Federal Law .................................................................... 2

1.e.Remedies ........................................................................................... 3

1.f.Enforcement ...................................................................................... 3

2.The Per Se Rule and the Rule of Reason ....................................................... 4

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

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

3.b.Market Allocation ............................................................................. 5

3.c.Customer Allocation ......................................................................... 5

3.d.Bid Rigging ....................................................................................... 5

3.e.Covenants Not to Compete ............................................................... 5

4.Group Boycotts .............................................................................................. 6

4.a.Concerted Refusals to Deal ............................................................... 6

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

Associations or Other Groups ........................................................... 6

5.Resale Price Maintenance .............................................................................. 6

5.a.Generally ........................................................................................... 6

5.b.Monsanto Rule .................................................................................. 7

5.c.Impact of Leegin ............................................................................... 7

6.Nonprice Vertical Restraints–Intrabrand ....................................................... 7

7.Nonprice Vertical Restraints–Interbrand ....................................................... 7

8.Tying Arrangements ...................................................................................... 8

9.Dual Distribution ........................................................................................... 8

10.Intracorporate Conspiracy .............................................................................. 8

11.Monopolization .............................................................................................. 9

11.a.Monopolization ................................................................................. 9

11.b.Attempts to Monopolize .................................................................... 9

11.c.Monopoly Leveraging ....................................................................... 9

11.d.Predatory Pricing ............................................................................... 9

11.e.Conspiracy to Monopolize ................................................................ 9

12.Mergers .......................................................................................................... 9

13.Discrimination & Other Single Firm Pricing Regulation ............................. 10

13.a.Price Discrimination ........................................................................ 10

13.a.1.Territorial or Locality Discrimination .......................... 10

13.a.2.Buyer Liability ............................................................. 10

13.a.3.Meeting Competition Defense ..................................... 11

13.a.4.Functional Classifications ............................................ 11

13.a.5.Preemption ................................................................... 11

13.a.6.Other Defenses and Exceptions ................................... 12

13.a.7.Brokerage ..................................................................... 12

13.a.8.Secret Payments or Allowances ................................... 12