Opinion ID: 429625
Heading Depth: 2
Heading Rank: 1

Heading: The Refusal to Sell New Equipment

Text: The Section 1 Claim 10 Calculators contends that Brandt's refusal to sell new equipment through Calculators unreasonably restrained competition in violation of section 1. The district court held that there could be no section 1 violation, because Brandt and Hallett were not sufficiently independent of each other to form a conspiracy. We agree. As this court recently stated, a section 1 conspiracy requires an agreement among two or more persons or distinct business entities. Reid Brothers Logging Co. v. Ketchikan Pulp Co., 699 F.2d 1292, 1296 (9th Cir.1983). See also Joseph E. Seagram & Sons, Inc. v. Hawaiian Oke & Liquors, Ltd., 416 F.2d 71, 82-83 (9th Cir.1969), cert. denied, 396 U.S. 1062, 90 S.Ct. 752, 24 L.Ed.2d 755 (1970). The district court's finding that Hallett sold new Brandt machines as Brandt's agent is not clearly erroneous. See Fed.R.Civ.P. 52(a). Hallett never owned or even possessed the Brandt machines; he merely took orders for them, forwarded the orders to Brandt, and received a percentage commission on sales made in his territory. In sum, Hallett was Brandt's sales agent and, in that capacity, was incapable of conspiring with Brandt to restrain trade in the sale of new money-handling machines. 1 The Section 2 Claim 11 In addition, Calculators alleged that Brandt monopolized sales of money-handling machines in violation of section 2 of the Sherman Act. The court held in favor of Brandt on this issue as well, on the ground that Calculators failed to establish Brandt's market share in sales of money-handling machines in Hawaii or nationwide. The court found that Calculators had introduced insufficient evidence to show monopoly power in any market, that Calculators had made no showing that Brandt attempted to use its market share unfairly, and that even if Calculators had standing to complain about Brandt's alleged monopolization, it had made no showing that other manufacturers of money-handling equipment were unable to compete effectively with Brandt. Although Calculators renews its section 2 claim on appeal, it fails to cite any evidence that is probative of Brandt's market share. We therefore affirm the judgment in favor of Brandt and Hallett with respect to all issues presented by the cross-appeal.