Document: 127 S. Ct. 2705 (2007) LEEGIN CREATIVE LEATHER PRODUCTS, INC., Petitioner, v. PSKS, dba Kay's Kloset... Shoes. No. 06-480. Supreme Court of United States. Argued March 26, 2007. Decided June 28, *2710 Theodore B. Olson, Washington, D.C., for petitioner. Thomas G. Hungar, States as amicus curiae, by special leave the Court, supporting Robert W. Coykendall, respondent. Barbara D. Underwood, New York, et al., amici Tyler A. Baker, Fenwick & West, LLP, Mountain View, CA, Counsel Record, Michael L. Denger, Joshua Lipton, Amir C. Tayrani, Gibson, Dunn Crutcher Jeffrey Levinger, Carrington, Coleman, Sloman Blumenthal, Dallas, TX, Gary Freedman, Law Offices Santa Monica, Nelson J. Roach, Neil Smith, Nix, Patterson L.L.P., Daingerfield, Texas, Stephen R. McAllister, Thompson, Ramsdell Qualseth, P.A., Lawrence, Kansas, Ken M. Peterson, Tim Moore, Luke Sobba, Will Wohlford, Kristen Wheeler, Morris, Laing, Evans, Brock Kennedy, Wichita, Justice KENNEDY delivered opinion Court. In Dr. Miles Medical Co. John Park Sons Co., 220 U.S. 373, 31 376, 55 Ed. 502 (1911), established rule that it is per se illegal under § 1 Sherman Act, 15 U.S.C. 1, a manufacturer to agree with its distributor set minimum price can charge manufacturer's goods. The question presented instant case whether should overrule and allow resale maintenance agreements be judged reason, usual standard applied determine if there violation 1. has abandoned illegality other vertical restraints imposes on distributors. Respected economic analysts, furthermore, conclude have procompetitive effects. We now hold overruled are reason. I Leegin Creative Leather Products, Inc. (Leegin), designs, manufactures, distributes leather goods accessories. 1991, began sell belts brand name "Brighton." Brighton expanded into variety women's fashion It sold across in over 5,000 retail establishments, most part independent, small boutiques specialty stores. Leegin's president, Jerry Kohl, also an interest about 70 stores products. asserts that, at least products, retailers treat customers better, *2711 provide more services, make their shopping experience satisfactory than do larger, often impersonal retailers. Kohl explained: "[W]e want consumers get different they Sam's Club or Wal-Mart. And you can't kind support customer service from store like Wal-Mart." 5 Record 127. Respondent, (PSKS), operates Kloset, apparel Lewisville, Texas. Kloset buys 75 manufacturers one time brand. first started purchasing 1995. Once selling brand, promoted Brighton. For example, ran advertisements had days store. became destination retailer area buy was store's important once accounted 40 50 percent profits. 1997, instituted "Brighton Retail Pricing Promotion Policy." 4 id., 939. Following policy, refused discounted below suggested prices. policy contained exception products not well did plan reordering. letter establishing stated: "In this age mega Macy's, Bloomingdales, May others, perplexed promises product quality which we believe lacking these large Consumers further confused ever popular sale, etc. "We, Leegin, choose break away pack [at] stores; offer great merchandise, superb service, 365 year consistent basis. "We realize half equation producing you, our retailer, creating looking manner." Ibid. adopted give sufficient margins central distribution strategy. expressed concern discounting harmed Brighton's image reputation. A after instituting pricing introduced marketing strategy known "Heart Store Program." See 962-972. offered incentives become Heart Stores, and, exchange, pledged, among things, soon created program. After employee visited found unattractive, parties appear agreed would beyond 1998. Despite losing status, continued increase sales. December 2002, discovered been marking down entire line 20 percent. contended placed sale compete nearby who were undercutting nonetheless, requested cease discounting. Its request refused, stopped loss considerable negative impact revenue *2712 PSKS sued District Eastern alleged, claims, violated antitrust laws "enter[ing] only those prices fixed Leegin." Id., 1236. planned introduce expert testimony describing effects policy. excluded testimony, relying Miles. At trial argued program, demonstrated fix responded unilateral lawful applies concerted action. Colgate 250 300, 307, 39 465, 63 992 (1919). jury awarded $1.2 million. Pursuant 15(a), trebled damages reimbursed attorney's fees costs. entered judgment against amount $3,975,000.80. Appeals Fifth Circuit affirmed. 171 Fed.Appx. 464 (2006) (per curiam). On appeal dispute price-fixing Rather, reason agreements. rejected argument. 466-467. correct explain remained bound "[b]ecause [the Supreme] consistently [vertical price-fixing] agreements." Fed.Appx., 466. premise held abuse discretion excluding expert, rendered irrelevant any justifications 467. granted certiorari continue treated unlawful. 549 ___, 763, 166 2d 590 (2006). II Section Act prohibits "[e]very contract, combination form trust otherwise, conspiracy, restraint trade commerce several States." Ch. 647, 26 Stat. 209, amended, While could interpreted proscribe all contracts, see, e.g., Board Trade Chicago States, 246 231, 238, 38 242, 62 683 (1918), never "taken literal approach [its] language," Texaco Dagher, 547 5, 126 1276, 164 repeated again "outlaw[s] unreasonable restraints." State Oil Khan, 522 3, 10, 118 275, 139 199 (1997). accepted testing practice restrains Texaco, supra, 1276. "Under rule, factfinder weighs circumstances deciding restrictive prohibited imposing competition." Continental T. V., GTE Sylvania Inc., 433 36, 49, 97 2549, 53 568 (1977). Appropriate factors take account include "specific information relevant business" "the restraint's history, nature, effect." 275. Whether businesses involved market power further, significant consideration. See, Copperweld Corp. Independence Tube Corp., 467 752, 768, 104 2731, 81 628 (1984) (equating *2713 "an inquiry structure designed assess [a restraint's] actual effect"); see Illinois Tool Works Independent Ink, 45-46, 1281, design function distinguishes between anticompetitive effect harmful consumer stimulating competition consumer's best interest. does govern restraints. Some types "are deemed unlawful se." treating categories necessarily illegal, eliminates need study reasonableness individual light real forces work, Business Electronics Sharp 485 717, 723, 108 1515, 99 808 (1988); must acknowledged, clear guidance certain conduct. Restraints horizontal competitors prices, divide markets, Palmer BRG Ga., 498 46, 49-50, 111 401, 112 349 (1990) Resort rules confined restraints, mentioned, "that always almost tend restrict decrease output." Electronics, 1515 (internal quotation marks omitted). To justify prohibition "manifestly anticompetitive" effects, Sylvania, 50, "lack ... redeeming virtue," Northwest Wholesale Stationers, Pacific Stationery Printing 472 284, 289, 105 2613, 86 202 (1985) As consequence, appropriate courts type issue, Broadcast Music, Columbia Broadcasting System, 441 9, 1551, 60 (1979), predict confidence invalidated instances Arizona Maricopa County Soc., 457 332, 344, 102 2466, 73 48 (1982). come no surprise, then, "we reluctance adopt regard imposed context business relationships where practices immediately obvious." 275 omitted); White Motor 372 253, 263, 83 696, 9 738 (1963) (refusing nonprice because uncertainty concerning satisfied demanding standards necessary apply rule). And, stated, "departure rule-of-reason based upon demonstrable rather formalistic drawing." 58-59, 2549. III agreement Monsanto Spray-Rite Service 465 761, 1464, 79 775 (1984). plaintiff, medicines, distributors *2714 resell them control relied common-law "a general alienation ordinarily invalid." U.S., 404-405, 376. then explained advantage distributors, manufacturer, analogous competing law void. 407-408, reasoning Court's recent jurisprudence rationales based. By alienation, justified decision "formalistic" legal doctrine "demonstrable effect," treatise published 1628, but failed discuss detail reasons motivate situated 1911 use Yet Act's "restraint trade" "invokes common itself, merely static content assigned term 1890." 732, 1515. especially when then-Justice Hughes used term, tended evoke concerns extraneous controls here. Usually associated land, chattels, arose restrictions removing property stream generations. cautious putting dispositive weight doctrines antiquity slight relevance. reaffirm state 400 even 100 years ago issue before us: distributional American economy today." 53, n. 21, 2549 Miles, makes later cases, however, reliance governing defining applicable ones. 734, (disclaiming "notion equivalence scope illegality"); County, 348, 18, 2466 (noting "horizontal generally less defensible restraints"). Our cases formulate principles accordance appreciated differences agreements, consider. rule. examine, instance, nonetheless appropriate. 726, Though each side debate find sources position, suffices say here economics literature replete maintenance. Brief Economists Amici Curiae 16 ("In theoretical literature, essentially undisputed *2715 [resale maintenance] conditions unlikely effects"); Amicus ("[T]here widespread consensus permitting may promote interbrand welfare ways"); ABA Antitrust Law, Economics Product Distribution 76 ("[T]he bulk suggests [it] likely enhance efficiency purposes"); H. Hovenkamp, Enterprise: Principle Execution 184-191 (2005) (hereinafter Hovenkamp); Bork, Paradox 288-291 (1978) Bork). Even skeptical acknowledge William Comanor al. 3 ("[G]iven [the] diversity [of maintenance], reasonably position warranted"); F.M. Scherer Ross, Industrial Market Structure Economic Performance 558 (3d ed.1990) Ross) ("The overall balance benefits costs probably close"). few studies documenting competitive cast doubt conclusion meets criteria Overstreet, Resale Price Maintenance: Theories Empirical Evidence 170 (1983) Overstreet) "[e]fficient uses evidently unusual rare"); Ippolito, From Litigation, 34 Econ. 292-293 (1991) Ippolito). similar 54-57, Minimum stimulate competitionthe brands same productby reducing intrabrand 51-52, promotion primary purpose protect [this of] 15, single tends eliminate competition; turn encourages invest tangible intangible services promotional efforts aid rival manufacturers. potential options so low-price, low-service brands; high-price, high-service fall between. Absent might underprovided. This free ride furnish capture some increased demand generate. 55, learn, invests fine showrooms, offers demonstrations, hires trains knowledgeable employees. Posner, 172-173 (2d ed.2001) Posner). Or decide *2716 establishment reputation high-quality merchandise. Marvel McCafferty, Maintenance Quality Certification, Rand 346, 347-349 McCafferty). If discounts spent capital providing developing reputation, will lose sales discounter, forcing cut back level lower otherwise prefer. alleviates problem prevents discounter provider. With decreased, themselves services. maintenance, addition, facilitating entry new firms brands. "[N]ew entering markets order induce competent aggressive investment labor required unknown consumer." 2549; McCafferty retailer's "will decline becomes better known, particularly device entrants"). essential dynamic economy, penetrated using effect. encouraging provided absent riding. difficult inefficient enforce contract specifying perform. Offering guaranteed margin threatening termination live up expectations efficient way expand share inducing performance allowing own initiative valuable Mathewson Winter, Maintenance, 13 Rev. Indus. Org. 57, 74-75 (1998) Winter); Klein Murphy, Vertical Contract Enforcement Mechanisms, 265, 295 Deneckere, Marvel, Peck, Demand Uncertainty, Inventories, Q.J. 885, 911 (1996) beneficial stock adequate inventories face uncertain demand). B setting justifications, cases; fixing, solely obtain monopoly profits, present temptation. may, facilitate cartel. 725, An cartel seek discover cartel's assist identifying price-cutting benefit offer. discourage cutting concomitant cheaper *2717 consumers. ibid.; Posner 172; Overstreet 19-23. "might organize cartels level." 725-726, group collude compel arrangement instance establish higher Retailers systems cost structures prevented charging agreement. 13-19. Historical examples suggest possibility legitimate concern. Welfare Effects 28 363, 373 Marvel) (providing example National Association Druggists maintenance); Hovenkamp 186 (suggesting druggists formed it). decreases output reduces is, ought be, 1276; 58, extent either cartel, it, too, useful evidence plaintiff attempting prove existence abused powerful retailer. dominant forestall innovation consider little choice accommodate demands believes needs access network. 31; 8 P. Areeda 47 ed.2004) cf. Toys "R" Us, FTC, 221 F.3d 928, 937-938 (C.A.7 2000). power, comparison, incentive smaller rivals entrants. 366-368. evident, consequences ignored underestimated. C Notwithstanding risks conduct, cannot stated degree "always tend[s] depending formed. although empirical topic limited, infrequent hypothetical. 170; 80 majority enforcement actions brought Federal Commission 1965 1982, motivated collusive dealers successfully coerced suppliers"); Ippolito 292 (reaching conclusion). *2718 ill suited condemnation. Respondent contends, administrative convenience rules. 16, "per community minimize burdens litigants judicial system"). That argument exception. misinterprets law. Per costs, equation. Those counterproductive. They total system prohibiting conduct encourage. Easterbrook, Arrangements Rule Reason, L.J. 135, 158 Easterbrook). litigation promoting frivolous suits practices. thus "advantages creation rules," relegated anticompetitive," Were undermine, overrule, traditional "demanding standards" adopting Any possible reduction alone argues lead 160 "price surveys indicate sold"). mistaken showing Cf. 106 (explaining "do tell us anything conclusive results both theories"). For, indicated already, primarily competition, result. moreover, evaluated though course 728, reduce resorted costlier alternatives controlling infra, 2721-2724; 371. Respondent's argument, overlooks general, interests aligned respect profit margins. difference charges represents distribution, which, cost, usually desires minimize. 56, 24, ("Economists maintaining much products"). *2719 overcompensate unjustified retailers, gain loses; competitiveness "substitute product." 52, 19, matter, therefore, desire "increase resulting enhanced offset price." Winter 67. implications respondent's far reaching. Many decisions carries out through action might, suppliers inputs improve quality. hire advertising agency awareness think violate require produce generic know want. strives despite true true, dangers. diligent eliminating market. realistic objective, inquiry. number given industry instruction. When practice, likelihood undercut 22; Bork 294. Likewise, Interbrand divert priced substitutes gains 292. subject careful scrutiny, contrast, many practice. Ross "except spreads cover industry's output, depriving meaningful low-price outlets, arrangements] innocuous"); Easterbrook 162 "every potentially-anticompetitive outcomes arrangements depends uniformity practice"). source impetus restraint, greater facilitates supports dominant, 7-8. If, independent pressure, 177 ("It point-of-sale profits"). protest retailer-induced *2720 harm position. final purposes serious unless entity power. lacks 727, 2, "[r]etail rare, presence dealers"). keep outlets. transactions principle party alleging injury have, resources available show operation. considering applying decisions, ensure businesses. Courts can, devise offering proof, presumptions justified, fair prohibit foregoing reasons, original unlawfulness, judge IV write clean slate, century old. So retention basis stare decisis alone. erroneous "[s]tare reflects matters settled right." 20, strong statutory interpretation. Hohn 524 236, 251, 1969, 141 242 (1998). Stare case, Act. presumption legislative changes left Congress force Act"). beginning statute. Soc. Professional Engineers 435 679, 688, 98 1355, 637 (1978); Airlines, Transport Workers, 451 77, 98, 42, 101 1571, 67 750 (1981) antitrust, federal act areas governed statute"). Just adapts modern understanding experience, too "restraint[s] evolve meet dynamics conditions. case-by-case adjudication contemplated implemented approach. Engineers, 1355. boundaries *2721 immovable. "[i]t sense create `restraint trade' chronologically schizoid statute, `rule reason' evolves circumstance wisdom, remains forever was." decisis, conclude, adherence discussed earlier, respected authorities inappropriate, 16. Department Commissionthe agencies ability long-term impacts maintenancehave recommended replace 6. fact "called question" justifies reevaluation it. Other considerations reinforce overturned. Of relevance, precedents subsequent undermined doctrinal underpinnings." Dickerson 530 428, 443, 120 2326, 147 405 (2000). treatment progressed Miles' strict distanced ourselves opinion's rationales. 2713-2714; (overruling views underlying [it been] eroded precedent"); Rodriguez de Quijas Shearson/American Express, 490 477, 480-481, 109 1917, 526 (1989) (same). unsurprising, decided long enactment analysis. Only eight reined holding announce refuse deal follow them. Colgate, 307-308, 465. following approach, temper, limit, prohibitions 1977, overturned stead. 57-59, Arnold, Schwinn 388 365, 87 1856, 18 1249 (1967)); 29, advantages limited entrants failing firms"). footnote treatment, 51, arguments unequal "difficult justify," 69-70, (White, J., concurring judgment). Continuing direction, two 1980's defined limit reach enunciated *2722 Colgate. 726-728, 1515; Monsanto, 763-764, 1464. plaintiffs conspiracy tending exclude acted manner. 764, Unlike Brennan's concurrence, overruled, 769, "decline[d] fixing neither 761-762, 7, narrowed specific levels terminate distributor. 726-727, 735-736, Most recently, examining maximum commentary 29-year-old precedent illegal. 22, Albrecht Herald 390 145, 88 869, 19 998 (1968)). instead limiting retained. inconsistent principled framework, analyzed insufficient such called question. These while result permit secure methods. methods, particular sustain. end hinders forced engage second-best shoulder expense inferior achieve exercise right same. 762-764, really agreement, subjecting treble criminal liability. Ibid.; stringent danger lead, led, rational wasteful measures. PING, 9-18. except counsel subtle intricacies longstanding minor violations without seeking explanation. ibid. burdensome *2723 measures generate flow Furthermore, sells, able integrating downstream directly tilts relative integration making former attractive Coase, Nature Firm, Economica, Series 386 (1937). distortion place, suffer suboptimal integration, unlike competition. There yet another impose territorial region. recognized, confirms, restraints; 762-763, 1464; 17-18. 560 "can engender inefficiencies maintenance"); Steiner, How Manufacturers Deal Price-Cutting Retailer: Are Efficient?, 65 407, 446-447 (1997) (indicating "antitrust recognize served maintenance]contrary status unlawfulness) division likewise justification current differential desired sum, flawed serves lawyersby distinctions operate traps unwarymore consumersby requiring sound objectives. reaffirming looks congressional 1937, passed Miller-Tydings Fair 693, made authorized enacted State. Fifteen later, exemption price-setting enforced McGuire 66 632. 1975, repealed Acts. Consumer Goods 89 801. *2724 according respondent, shows ratified so. text codify rescinded provisions legal. within ambit discussed, intended "to develop law" tradition. Texas Industries, Radcliff Materials, 630, 643, 2061, 68 500 (1981); 731, changing recognized enacted"). stone, chose flexible option. analyzing conformance principles, including "evolv[e] wisdom." 139. earlier exemption, respect, prior illuminating. goal "was establishments thought driven marketplace large-volume discounters." California Liquor Dealers Assn. Midcal Aluminum, 445 97, 102, 937, 233 (1980). grounds. 298. foreign Divorced welfare, save inability compete. laws, protection competitors." Atlantic Richfield USA Petroleum 495 328, 338, 110 1884, 333 promotes objective. relies appropriations mid-1980's funds advocate overturning 1071. pause addressing funding longer ambiguous best. approval demonstrate proposition: pass legislation codifying reached short-term compromise instead. Reliance sure, adhere Payne Tennessee, 501 808, 828, 2597, 115 720 (1991), "in involving rights," here, narrowness allowed *2725 ways. longstanding, past until 1975. note during "when environment [United States] favorable tiny fraction employed contracts." 6; 169 "no manufacturers, accounting ten purchases, States]"); "[t]he covered heyday variously estimated 10 percent"). cheap goods, judging prevent 152-153 "S.S. Kresge (the old K-Mart) flourished manufacturers' greatest freedom" "discount value" "[n]othing restricted dealing threatens low prices"); 557 "for part, [Consumer Act] imperceptible already [previous exemption] quiet way"). overruled. V Noting president ownership Brighton, respondent claims participated allegation courts, reversed, remanded proceedings opinion. ordered. BREYER, whom STEVENS, SOUTER, GINSBURG join, dissenting. 394, 408-409, proprietary medicines "invalid... [Sherman 1]." read bright-line Trenton Potteries 273 392, 399-401, 377, 71 700 (1927); NYNEX Discon, 525 128, 133, 119 493, 142 510 profession, business, public close century. Today holds lawfulness applying, circumstance-specific "rule reason." Ante, 2725. doing overturns departure ordinary *2726 pointing ante, 2715-2716. repeatedly grounds Hearings H.R. 10527 Subcommittee Commerce Finance House Committee Interstate Foreign Commerce, 85th Cong., Sess., 74-76, 89, 99, 101-102, 192-195, 261-262 (1958). my view, warrant well-established precedent. seeks maintain practices, private firms. assumes marketplace, restrictions, bring production processes typically desire. determining examine practice's justifications. Collegiate Athletic Regents Univ. Okla., 468 85, 109-110, 39, 2948, 82 (1984); 688-691, (1918). Nonetheless, sometimes (or, prove) departed pure reason" unlawfulnessa instructs (or nearly all) time. NYNEX, 493; 343-344, (1982); (1977); Topco Associates, 596, 609-611, 92 1126, 515 (1972); Socony-Vacuum 310 150, 213-214, 811, 84 1129 (1940) (citing quoting Potteries, 397-398, 377). asks issue. Should variation) always) unlawful? reason"? writing blank questions difficult. But, course, difference. why afresh, briefly summarize classical focus three sets considerations, involving: (1) (2) benefits, (3) administration. difficulty arises point directions. Areeda, ¶¶ 1628-1633, pp. 330-392 (1st ed.1989) Areeda); 288-339 146-152 *2727 Easterbrook); Pitofsky, Defense Discounters: No-Frills Case Se Against Fixing, Geo. 1487 Pitofsky); Scherer, Restraints, 52 687, 706-707 Scherer); Next Step Treatment Restricted Distribution: Legality, U. Chi. L.Rev. 6, 22-26 Frederic 7-10. hand, consequences. dealers: diminish (if practiced manufacturers) multibrand dealers. so, prefer; responding demand, falling prices; encourage substitute price, thereby wastefully attract portion industry; inhibit expansion whose customers, stifling development new, modes retailing; forth. ¶ 1632c, 319-321; Evolution Applications Dual-Stage Thinking, 49 Bulletin 877, 899-900 (2004); Comanor, Price-Fixing, Restrictions, Policy, Harv. 983, 990-1000 (1985). producers: help competition-inhibiting behavior concentrated industries. industries tacitly collude, i.e., observe other's behavior, firm trigger all. 1632d, 321-323; Kaplow, Analysis 231-233, 276-283 (4th ed.1988) Kaplow). Container America, 393 333, 510, 21 (1969); Kaplow 247-253, 327-348. Where easier producer identify (by observing markets) competitor begun cuts wholesale lowering stand little, anything, dealer unable passing along producer's "breaking out"; stabilize Pitofsky 1490-1491. Cf., 336-337, 510. express before, after, 1975 631. Acts permitted (but required) enact "fair authorizing repeal 36 States; 14 408 Monopoly Senate Judiciary, 94th 1st 173 (1975) *2728 408) (statement E. Kauper, Assistant Attorney General, Division). Comparing latter raised 19% 27%. 2384 Monopolies Commercial 122 2384) Keith I. Clearwaters, Deputy repeal, every (FTC) staff, studying numerous surveys, wrote collectively "indicate[d] maintenance]." Bureau Staff Report Evidence, Overstreet). economists today words prominent treatise, "resale case." 1604b, (finding persuasive point"). uniformly acknowledged prices"). favoring benefits. lists two: First, entry. newly wishing build convince soif, if, assure recoup investment. Without late-entering drive early recover what spent. assuring initial occur, carry product, helping succeed. 1617a, 1631b, 193-196, 308. level, inter-brand brings net Second, advocates call "free riding." Suppose concludes succeed say, high shops, creates image, ride" others Such money paying consequently Under circumstances, unwilling provision 1611-1613, 1631c, 126-165, 309-313; ed.2001); 290-291 Bork); 146-149. *2729 Moreover, exist. because, things being equal, producers profits product. 290. possesses earn super-normal profit. his higher-than-competitive) Hence, moving force, wanting maintenance; absence of, (where consist prices), reflect just described: entry, riding," variations themes. upshot suggest, harmful; 16; 1631-1632, 306-328; 1495; 706-707. But concluding ask as, how harms occur? easy separate sheep goats? discussion, upon, answers questions, should, inform cannot, not, precisely replicate economists' (sometimes conflicting) views. law, economics, depend judges juries lawyers advising clients. means bear, unlawfulness 335-339 (describing "unfettered competition," noting ban assessment agreements). described analyses (though cause regularityand certainly driving force. benefits? often, points occur practice? point. riding" takes place. place effort stop visitors rides Coast Highway. freely ideas, supermarket. investments building product's enough significantly deter *2730 specific, easily imagine refuses presale detailed explanation works fails proper atmosphere expensive perfume alligator billfolds), lest "free" enjoy psychological arising high-priced stocks billfold handbag) price. Sometimes happen reality. often? do, all, firms, still complex technical equipment (as billfolds) All ultimate whether, much, sort reading briefs, answer "sometimes." 6-7 "skepticism [free riding] actually occurs"); 551-555 "severe limitations" free-rider Why Was Right, Regulation, 27, 29-30 (Jan./Feb.1984) (similar analysis). outweigh harms? My very easily. thing, whoproducer dealeris behind Suppose, resale-price-maintained fear favor (say, allocating shelf-space) Who "initiated" hoping insulation producers, simply find? said, when, where, protection. scholars sought check found. 1633c-1633e, 330-339. 8-10. court said done. invitation "market power," 2720, invites lengthy time-consuming experts, abstract, highly technical, ill-defined markets. major merger involve parties. One fairly expect mistakes, Enterprise (litigating "one costly procedures Bok, 7 Clayton Merging Economics, 74 226, 238-247 (1960) FTC case). *2731 rule? unfair, impractical, officials proceedings. since tempt enter are, balance, anticompetitive. Given uncertainties surround key items sheet, "administrative" concede now, slightly modified identifiable temporary condition "new entry." 1495. am starting scratch. change simple price-related write, slate begins goes list century's worth massive amounts advice clients, untold numbers clients taken advice. Bausch Lomb Optical 321 707, 721, 64 805, 1024 (1944); [vertical] firmly ..."). Indeed Westlaw search itself cited dozens times hundreds courts. wish bear heavy burden proof. Brick Illinois, 431 720, 736, 707 (1977) (noting, declining interpreting "considerations weigh heavily construction, interpretation legislation"). aware Regardless, claim over-ruling met. Planned Parenthood Southeastern Pa. Casey, 505 833, 854-855, 2791, 674 (1992). Election Comm'n Wisconsin Right Life, ___ 19-21, 2652, L.Ed.2d 2007 WL 1804336 (SCALIA, decades helps majority's fact, strongly contrary. consciously extended Indeed, urging application virtually presented. reject 408, 176-177 Division); 170-172 (testimony Lewis Engman, Chairman FTC); 2384, 113-114 *2732 fully understood, intended, S.Rep. 94-466, 1-3 (1975), U.S.Code Cong. Admin.News 1569, 1570-71 ("Without exemptions Acts,] authorize laws.... [R]epeal enforcing ("Congress recently analysis repealing fair-trade option States"). reconsidering enacting premised constitutes stronger keeping arguments. Have changes? studies, argue, contrary harmful. study, litigated collusion. 281-282, (1991). equates failure allege collusion collusionan superfluous nature allegations tacit take. Policy 11.3c, p. 464, ed.2005); 2711-2713. provides "need prices." Political Economy 94 Pol. 1074, 1075 (1986). develops model "under assumption efficiency-enhancing." 1940 authors criticized. 1091. view. 4. together, mild constitute circumstances. Petitioner newer 119-129 studies). proponents conceded much. What remarkable nothing new. 2711, 2716 articles going decades). feature lies overruling host *2733 not-very-persuasive rely. 1631a, 350-352 (listing "`[t]raditional' justifications" maintenance). arguable consists "even "may services." 2716. count exception, understand how, free-riding (and assuming competitiveness), Why, assumptions, "expand" share" sees fit, obtaining payment process? seen clarity generalist understand. No changed ways majority. Concentration retailing increased. (since banned nationwide dropped growth risen); Institute 17, reporting combined largest worldwide grown 30% top retailers; 1999 Organisation Co-operation Development report stating "`last twenty momentous increases concentration'"); Mamen, Facing Goliath: Challenging Impacts Supermarket Consolidation Local Economies, Communities, Food Security, Oakland Institute, Brief, 2 (Spring 2007), http://www.oakland institute.org/pdfs/facing_goliath.pdf 25, 2007, Clerks file) "[f]or decades, five food controlled market"; 1997 2000, 24 42 sales"; "[b]y 2003, grocery sales"). change, enable motivate) percentage volume, (perhaps internet retailers) share. Nor anyone concentration diminished significantly. tell, not. Consider household electrical appliances, late 1950's constituted Hollander, 67, 80-81 (B. Yamey ed.1966). Although somewhat compare census data 2002 (because classification system), subsets appliance concentrated, terms then. domestic cooking appliances 68% *2734 (measured value shipments) 1963 earliest date data), compared 77% 2002. Dept. Census, 1972 Census Manufacturers, Special Series, Ratios Manufacturing, MC72(SR)-2, SR2-38 Census); Ratios: EC02-31SR-1, Census). laundry 95% (90% 1958), 99% SR2-38; 55. refrigerators freezers 91% 1963, Increased producer-originated prevalent past, least, these, change. ground abandoning preceding discussion mind, consult indicates case. SCALIA, separately Term, summarizes 2684-2686, 1804336. (opinion factor he mentions "rigidly" constitutional cases. Glidden Zdanok, 370 530, 543, 1459, 671 (1962); 2061. wrongly short ago. SCALIA put "[o]verruling unprecedented." 2685, (emphasis added). ago, reaffirmed intervening years. 377; Lomb, 805; Parke, Davis 362 45-47, 503, (1960); Simpson Union Cal., 377 13, 16-17, 1051, 12 (1964). Third, "unworkable" regime overruling. 827-828, (1991); Swift Wickham, 382 111, 116, 258, 194 (1965). Implementation complications attendant (1919), proved practical last century, complexities litigating regime. shown *2735 "administrable," J.), remain good Fourth, "unsettles" argue 47, - 2685-2686, J.). well-settled previously recognized. unsettle Fifth, involves rights rights, involved, Payne, 2597. perhaps (consider malls). vitality McGuire. Supra, 2716-2717. Executive Branch whole sectors rely factory outlet tells "form[s] regulatory background [that firm] discount financed, structured, operated businesses." Burlington Coat Factory Warehouse 5. Federation America exist Miles; "by stabilizing preventing erects potentially insurmountable barrier innovators." 7-9 (discussing, inter alia, comments Wal-Mart's founder 25 relaxation "`great danger'" then-relatively-nascent business). 14-15, therein (making point). similarly invested time, money, Americans. jeopardizes reliance, more. malls built anchor tenant? home buyers home's distance mall account? Americans, consumers, understandably assumed, 30 years, legally life? denies none this. says "reliance ..., rule." 2724. minimizes importance adding "is note" contracts "`no employed'" (quoting 6). "tiny" "`ten purchases'" annually. figure today's equals $300 billion. *2736 Statistical Abstract States: 649 (126th ed.) (over $3 trillion 2002). Putting estimate together Department's 1970's translates permits bills average roughly $750 $1000 annually family four. today, unknown, namely future figures families dismissed "tiny." Sixth, "embedded" "national culture" 443-444, forbidding antitrust. economy's "`central nervous system.'" 692, 1355 Oil, 59, 811). basic (that prefer service). embodies objective matters). administered enforceable bright line, "Do price," understood. "[f]rom beginning... statute," 2721-2722. (1997), (1968), se, (1967), producer-imposed limits se. 29 Albrechtstill period, nowhere stood. specifically noted lack Albrecht. 18-19, (Albrecht "little relevance ongoing Compare, 1632, 316-328 (analyzing maintenance), 1637, 352-361 also, 1490, 17. Albrecht's Schwinn, explicitly distinguished "recently restrictions" Acts, "[n]o expression intent exists restrictions." decade Schwinn. perceived avoid "confusion" *2737 47-49, totally tradition." Ante Common-law rarely outright. gradually question, eventually rest. modifying 1495, swallow century-old precedent, affecting billions dollars sales, reader "common-law" Cardozo's Allegheny College Chautauqua Cty. Bank Jamestown, N.Y. 369, 159 N.E. (1927), gradualism characterize decision. rests merits scholars' Professors Hart Sacks mentioned) "adherence holdings." Sacks, Legal Process 568-569 (W. Eskridge Frickey eds.1994). Karl Llewellyn written judge's "conscious reshaping" "must move movement truly presses." Bramble Bush 156 (1960). pressing need? notes 2720-2721. well-equipped gather outside done mentioned counsels me satisfying decision, joined THOMAS, JJ., judgment), satisfy Either * safe predictions raise turbulence workable principles. standing. dissent.

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