Document: 472 U.S. 284 105 S.Ct. 2613 86 L.Ed.2d 202 NORTHWEST WHOLESALE STATIONERS, INC., Petitionerv.PACIFIC STATIONERY AND PRINTING CO. No. 83-1368. Argued Feb. 19, 1985. Decided June 11, Syllabus Petitioner is a wholesale purchasing cooperative whose membership consists of office supply retailers in the Pacific Northwest States. Nonmember can purchase supplies from petitioner at same price as members, but since annually distributes its profits to members form percentage rebate, effectively lower than do nonmembers. expelled respondent without any explanation, notice, or hearing. Thereafter, brought suit Federal District Court, alleging that expulsion procedural protections was group boycott limited ability compete and should be considered per se violative § 1 Sherman Act. On cross-motions for summary judgment, Court rejected application rule held instead rule-of-reason analysis govern case. Finding no anticompetitive effect on basis record, court granted judgment petitioner. The Appeals reversed, holding although 4 Robinson-Patman Act expressly approves discrimination occasioned by such an one question thus provides mandate self-regulation, nevertheless, because had not provided safeguards, shielded therefore constituted violation Held: Petitioner's does fall within category activity conclusively presumed so invalidation under concerted refusal deal. Pp. 289-298. (a) Section Act, which more narrow immunity prohibitions cannot properly construed exemption repeal portion broad industry self-regulation. Silver v. New York Stock Exchange, 373 341, 83 1246, 10 389, distinguished. In event, absence safeguards this case sense determine antitrust analysis, if challenged amounted 1, amount protection would save it, whereas did lack convert it into violation. 291-293. (b) act necessarily imply animus raise probability effect. Unless shown possesses market power exclusive access element essential effective competition, conclusion virtually always likely have warranted. Absent showing with respect buying arrangement, courts apply analysis. Here, respondent, focusing argument required liability, made showing. But applied erroneous never evaluated Court's rejecting respondent's claim, remand appropriate permit appellate review determination. 293-298. 715 F.2d 1393 (CA 9 1983), reversed remanded. David J. Sweeney, Portland, Or., Catherine G. O'Sullivan, Washington, D.C., United States amicus curiae, special leave Court. Joseph P. Bauer, respondent. Justice BRENNAN delivered opinion This requires we decide whether 15 U.S.C. occurs when agency comprising various expels member providing means challenging expulsion.1 also raises broader questions appropriately joint susceptible being characterized 2 * Because ruled after only discovery, comes us sparse record. Certain background facts are undisputed. Wholesale Stationers up approximately 100 acts primary wholesaler retailers. Retailers members. At end each year, however, rebate purchases. Members significantly nonmembers.2 certain warehousing facilities. arrangement permits participating achieve economies scale otherwise unavailable them. fiscal 1978 $5.8 million sales. App. 73. 3 Respondent Stationery & Printing Co. sells both retail levels. Its total sales were $7.6 million; record indicate what revenue attributable wholesale. became 1958. 1974 amended bylaws prohibit engaging operations. See id., 50, 59. A grandfather clause preserved Pacific's rights. 1977 ownership controlling share stock changed hands, 70, new owners officially bring change attention directors Northwest. failure notify apparently violated another Northwest's bylaws. 59 (Bylaws, Art. VIII, 5). voted expel Pacific. Most factual matters relevant dispute. No explanation advanced time, given neither hearing, nor other opportunity challenge decision. argues resulted decision maintain operation. Brief Opposition 11. contends ownership. Pet. Cert. 8. minutes meeting definitively motive expulsion. 75-77. It undisputed received $10,000 rebates 1978, last year membership. Beyond possible inference loss fact, devoid allegations indicating nature extent competitive injury caused suffer. 5 1980 Oregon gravamen action 1. Complaint ¶ 8, 4-5. presented, 22-24. 6 Ninth Circuit "that uncontroverted support finding liability." 1393, 1395 (1983). reasoned cooperative's deal equal footing, specific legislative self-regulation sanctioning noted 13b, specifically concluded Such mandate, according court, ordinarily result evaluation practice reason. But, drawing 348-349, 1252-1253, 389 (1963), decided condition sufficient prevent arbitrary furnish judicial review. F.2d, 1395-1398. 7 We certiorari examine supra, area law has been free confusion.3 469 814, 77, 26 (1984). reverse. II 8 certainly restraint trade every commercial agreement restrains trade. Chicago Board Trade States, 246 231, 238, 38 242, 243, 62 L.Ed. 683 (1918). Whether violates depends adjudged unreasonable restraint. Ibid. Rule-of-reason guides inquiry, see Standard Oil 221 31 502, 55 619 (1911), unless falls "agreements practices their pernicious competition redeeming virtue illegal elaborate inquiry precise harm they business excuse use." Northern R. 356 5, 78 514, 518, 545 (1958). approach categorical judgments proved predominantly anticompetitive. Courts thereby avoid "significant costs" "business certainty litigation efficiency" full-fledged entails. Arizona Maricopa County Medical Society, 457 332, 343-344, 102 2466, 2472-2473, 73 48 (1982). Topco Associates, Inc., 405 596, 609-610, 92 1126, 1134-1135, 515 (1972). turns "whether facially appears almost tend restrict decrease output . designed 'increase economic efficiency render markets more, rather less, competitive.' " Broadcast Music, Inc. Columbia Broadcasting System, 441 19-20, 99 1551, 1562-1563, 60 (1979) (citations omitted). National Collegiate Athletic Assn. Regents University Oklahoma, 468 85, 103-104, 104 2948, 2961-2962, 82 70 (1984) ("Per rules invoked surrounding circumstances make likelihood conduct great unjustified further examination conduct"). long refusals boycotts offsetting gains condemned violations Klor's, Broadway-Hale Stores, 359 207, 79 705, 741 (1959); General Motors Corp., 384 127, 1321, 16 415 (1966); Radiant Burners, Peoples Gas Light Coke Co., 364 656, 81 365, 358 (1961); Associated Press 326 65 1416, 89 2013 (1945); Fashion Originators' Guild America, FTC, 312 457, 61 703, 85 949 (1941); Eastern Retail Lumber Dealers' 234 600, 34 951, 58 1490 (1914). presented anticompetitive.4 exclusion ground Even justify conclusive presumption effect, mere competitor might argued sufficiently effects present rule. These possibilities will analyzed separately. 11 drew venture—including deal—undertaken pursuant immune scrutiny subject adequate accompany disagree conclude proper controversy. 12 framed issue follows: 13 "[W]hether Exchange liable nonmember broker-dealer laws regarded impliedly therefrom when, adopted Securities 1934, orders number remove private direct telephone wire connections previously operation between offices those nonmember, giving assigning him reason action, affording heard." Id., 343, S.Ct., 1249. 14 occupied dominant position securities trading devastate immunity. 347-348, 1251-1252. effectuation policies partial insofar proscribed aspect exchange self-regulation—including limit dealings nonmembers—to policy having partially repealed type issue. interpretive maxim disfavoring repeals implication led permissible self-policing situations provided. "Congress thought sanctioned protected self-regulative carried out fundamentally unfair manner. point impose requirement notice hearing here, that, acting petitioners these response request, plainly exceeded scope authority engage self-regulation." 364, 1260 (footnote 17 Thus need accommodate important national promoting tempered principle narrowed necessary effectuate policy, dictated Silver. 18 comparable provisions That section itself. Conference Report makes clear exception intended solely "safeguard producer consumer cooperatives against charge based distribution earnings surplus among patronage basis." H.R.Conf.Rep. 2951, 74th Cong., 2d Sess., (1936) (emphasis added). granting blanket plausibly Act.5 "There nothing bill [containing 4] distinguishes cooperatives, either favorably unfavorably, agencies streams production trade, far concerns others." 80 Cong.Rec. 9419 (remarks Rep. Utterback). 19 light circumscribed congressional intent, there viewed exists, therefore, order competing requiring discretionary self-policing. Indeed, Congress appear taken some care constriction intended. If it. themselves ventures process. B 20 mandating invalidation. "Group boycotts" often listed classes merit U.S., 212, 709; 518; 348, 1252; White Motor 372 253, 259-260, 696, 699-700, 738 (1963). Exactly types forbidden is, certain. "[T]here confusion about reference doctrine." L. Sullivan, Law Antitrust 229-230 (1977). Some defining condemnation. St. Paul Fire Marine Ins. Barry, 438 531, 543, 98 2923, 2930, 57 932 (1978) (concerted "are unitary phenomenon"). Cf. 9, 1557. 21 Cases generally involved efforts firm firms disadvantage competitors "either directly denying persuading coercing suppliers customers deny relationships struggle." 261-262. See, e.g., Silver, supra (denial members); (1961) certification product); (1945) sources news); supplies). cases, cut off supply, facility, enable boycotted compete, supra; frequently boycotting possessed market. E.g., Press, (1941). Brodley, Joint Ventures Policy, 95 Harv.L.Rev. 1523, 1533, 1563-1565 addition, justified plausible arguments enhance overall competitive. Under possibility countervailing procompetitive remote. 22 Although possess all traits treatment, involving consequences. For example, recognized Term Oklahoma treatment NCAA's restrictions marketing televised college football inappropriate—despite obvious output—because "case involves horizontal restraints product available all." 101, 2960. 23 characteristically effects. Rather, arrangements seem "designed increase competitive." 20, 1562. supplies, ensures ready goods short notice. cost savings order-filling guarantees smaller reduce prices larger 24 Pacific, course, object existence bar continued membership.6 must appropriate. establish enforce reasonable function effectively. Disclosure rules, relies, may well provide needed monitoring creditworthiness members.7 Nor effects, least situation presents. 292-293 (1977); Harv.L.Rev., 1563-1565. Jefferson Parish Hospital Dist. Hyde, 466 2, 12-15, 1558-1560, (absent indication power, tying warrant invalidation). 104, n. 26, 2961, require considerable conditions before evidence justifies time threshold structural characteristics Complaint, 2; Motion Partial Summary Judgment, 9.8 25 followed correct path analysis—recognizing accorded deciding not.9 foregoing discussion suggests, satisfactory determination detailed picture structure Nonetheless, our rejection correct. plaintiff seeking allegation suffice When challenges cooperative, unique competition. Focusing allege facts. case, claim. purpose permitting III "The valid useful tool enforcement." 1556. denigrate suggest application. failed exercise requisite inappropriately. remanded proceedings consistent opinion. 27 ordered. 28 MARSHALL POWELL took part reads part: "Every contract, combination trust otherwise, conspiracy, commerce several foreign nations, declared illegal." discrimination, sanctions cooperatives: "Nothing shall association returning producers, consumers whole, of, net resulting operations, proportion purchases from, to, through association." 49 Stat. 1528, 13b. state-law provision analogous protection. Ore.Rev.Stat. 646.030 Per Se Illegality Concerted Refusals Deal: Rule Ripe Reexamination, Colum.L.Rev. 685 (1979). "combination conspiracy" affecting interstate meaning American Specialties 278 225, 229 (CA2), cert. denied, 884, 169, (1960). wholly excluded perhaps To precise, substantially terms. placed severe disadvantage. 1521, 1532 (1982) ("Even venture outside firms, place them treating less treats [participants venture]"). argues, justification pretext fully aware despite formal According retaliate independent troubling. related efficiency-enhancing purposes practices, Given state difficult understand how could "loses use superior expedited facilities, advantages flow simply known established cooperative." found stated: "I think nature, move violation, show I don't believe here. boycott, still [Joseph E. Seagram Sons, Hawaiian Oke Liquors, Ltd., 416 71 (CA9 1969) Ron Tonkin Gran Turismo, Fiat Distributors, 637 1376 1981) ], Reason operates. And you submitted parties here disputed come [sic ] Plaintiff distinguished damage 23-24.

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