Tennessee

• Pages: 2271-2355

Chapter 46

for the

STATE OF TENNESSEE

Updated and Revised by

R. Dale Grimes, Esq.

Joshua R. Denton, Esq.

Wendee M. Hilderbrand, Esq.

Joshua V. Lindsey, Esq.

Katherine A. Quitter, Esq.

Matthew J. Sinback, Esq.

Bass, Berry & Sims, PLC

Nashville, Tennessee

The Section of Antitrust Law thanks Dennis J. Garvey, Deputy Attorney General,

and Victor J Domen, Jr., Assistant Attorney General, Tennessee Attorney General’s

Office, for their review of this chapter.

The Section gratefully acknowledges Edward N. Boehm, Esq., Thomas C. Daniels,

Esq., Lisa B. Gates, Esq., Brian E. Humphrey, Esq., Joel W. Richardson, Jr., Esq.,

Keith D. Shugarman, Esq., John W. Treece, Esq., Mark D. Wegener, Esq., James A.

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

editions.

Tennessee 46-iii

CONTENTS

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

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

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

1.c. History...............................................................................................3

1.d. Relation to Federal Law....................................................................4

1.e. Remedies...........................................................................................5

1.f. Enforcement......................................................................................5

2. The Per Se Rule and the Rule of Reason ........................................................5

3. Horizontal Agreements Other Than Group Boycotts .....................................6

3.a. Price Fixing .......................................................................................6

3.b. Market Allocation .............................................................................7

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

3.d. Bid Rigging.......................................................................................8

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

4. Group Boycotts.............................................................................................11

4.a. Concerted Refusals to Deal .............................................................11

4.b. Expulsion or Exclusion from Membership in Trade

Associations or Other Groups .........................................................12

5. Resale Price Maintenance.............................................................................12

5.a. Generally.........................................................................................12

5.b. Monsanto Rule................................................................................13

5.c. Impact of Leegin .............................................................................14

6. Nonprice Vertical Restraints–Intrabrand......................................................14

7. Nonprice Vertical Restraints–Interbrand......................................................15

8. Tying Arrangements..................................................................................... 17

9. Dual Distribution ..........................................................................................17

10. Intracorporate Conspiracy.............................................................................17

11. Monopolization.............................................................................................19

11.a. Monopolization...............................................................................19

11.b. Attempts to Monopolize..................................................................23

11.c. Monopoly Leveraging..................................................................... 23

11.d. Predatory Pricing.............................................................................24

11.e. Conspiracy to Monopolize ..............................................................24

12. Mergers.........................................................................................................24

13. Discrimination & Other Single-Firm Pricing Regulation............................. 27

13.a. Price Discrimination .......................................................................27

13.a.1. Territorial or Locality Discrimination...........................27

13.a.2. Buyer Liability..............................................................27

13.a.3. Meeting Competition Defense ......................................27

13.a.4. Functional Classifications.............................................27

13.a.5. Preemption....................................................................28

13.a.6. Other Defenses and Exemptions...................................28

13.a.7. Brokerage......................................................................28

13.a.8. Secret Payments or Allowances....................................28