Montana

• Pages: 1467-1522

Chapter 29

for the

STATE OF MONTANA

Updated and Revised by

Heather M. Cooper, Esq.

Don T. Hibner, Jr., Esq.

Sheppard, Mullin, Richter & Hampton LLP

Los Angeles, California

The Section of Antitrust Law thanks Greg Overturf, Legal Counsel, Montana

Department of Commerce, for his review of this chapter.

The Section gratefully acknowledges Suzanne B. Drennon, Esq., David B. Kinnard,

Esq., Jennifer Lum, Esq., Kay Solomon, Esq., and Carlton A. Varner, Esq. for their

work on this chapter in prior editions.

Montana 29-iii

CONTENTS

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

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

1.b.Source of Law–Statutes and Other....................................................2

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

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

1.e. Remedies...........................................................................................2

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

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 .........................................................................6

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

3.e.Covenants Notto Compete ...............................................................7

4.Group Boycotts...............................................................................................7

4.a.Concerted Refusals to Deal ...............................................................7

4.b.Expulsion or Exclusion from Membership in Trade

Associations orOther Groups ...........................................................8

5.Resale Price Maintenance...............................................................................8

5.a. Generally...........................................................................................8

5.b. Monsanto Rule ..................................................................................9

5.c.Impact of Leegin ...............................................................................9

6.Nonprice VerticalRestraints–Intrabrand........................................................9

7.Nonprice Vertical R estrains–Interbrand.........................................................9

8.Tying Arrangements .....................................................................................10

9.Dual Distribution ..........................................................................................10

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

11. Monopolization.............................................................................................11

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

11.b.Attempts to Monopolize..................................................................12

11.c.Monopoly Leveraging.....................................................................12

11.d.Predatory Pricing.............................................................................12

11.e.Conspiracy toMonopolize.............................................................. 13

12. Mergers.........................................................................................................13

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

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

13.a.1.Territorial or Locality D iscrimination........................14

13.a.2.Buyer Liability............................................................15

13.a.3.Meeting Competition Defense....................................16

13.a.4.Functional Classifications...........................................16

13.a.5. Preemption..................................................................16

13.a.6.Other Defenses and Exemptions.................................16

13.a.7. Brokerage....................................................................17

13.a.8.Secret Payments or Allowances..................................17

13.a.9.Promotional Allowances and Services .......................17