Preemption By Section 1 of State Statutes That Restrain Competition
To determine whether a particular state statute that restrains competition was intended to be preempted by the Act, courts will engage in a two-step analysis, as set forth by the Supreme Court in Rice v. Norman Williams Co..
- First, they will inquire whether the state legislation "mandates or authorizes conduct that necessarily constitutes a violation of the antitrust laws in all cases, or ... places irresistible pressure on a private party to violate the antitrust laws in order to comply with the statute." Rice v. Norman Williams Co., 458 U.S. 654, 661; see also 324 Liquor Corp. v. Duffy, 479 U.S. 335 (1987) ("Our decisions reflect the principle that the federal antitrust laws pre-empt state laws authorizing or compelling private parties to engage in anticompetitive behavior.")
- Second, they will consider whether the state statute is saved from preemption by the state action immunity doctrine (aka Parker immunity). In California Retail Liquor Dealers Association v. Midcal Aluminum, Inc., 445 U.S. 97, 105 (1980), the Supreme Court established a two-part test for applying the doctrine: "First, the challenged restraint must be one clearly articulated and affirmatively expressed as state policy; second, the policy must be actively supervised by the State itself." Id. (citation and quotation marks omitted).
Read more about this topic: Sherman Antitrust Act
Famous quotes containing the words section, state, restrain and/or competition:
“... all my letters are read. I like that. I usually put something in there that I would like the staff to see. If some of the staff are lazy and choose not to read the mail, I usually write on the envelope “Legal Mail.” This way it will surely be read. It’s important that we educate everybody as we go along.”
—Jean Gump, U.S. pacifist. As quoted in The Great Divide, book 2, section 10, by Studs Terkel (1988)
“Such writing is a sort of mental masturbation.... I don’t mean that he is indecent but viciously soliciting his own ideas into a state which is neither poetry nor anything else but a Bedlam vision produced by raw pork and opium.”
—George Gordon Noel Byron (1788–1824)
“Therefore I will not restrain my mouth; I will speak in the anguish of my spirit; I will complain in the bitterness of my soul.”
—Bible: Hebrew, Job 7:11.
“Wearing overalls on weekdays, painting somebody else’s house to earn money? You’re working class. Wearing overalls at weekends, painting your own house to save money? You’re middle class.”
—Lawrence Sutton, British prizewinner in competition in Sunday Correspondent (London)