bare with me my spelling and grammer are poor. But I have a metals recycling yard. We buy and seperate scrap metal from the public then sell the material on down the line for further processing. The one of the companies that well sell to began construction on a yard in very close proximity to ours several years ago (they do the low scale like us and a mill ready version). We were informed by this company that if we sold our ferrous products exclusivly to them that they would halt construction. Being a small company we didnt have alot of options so we complied and they halted construction. As time went on (over the course of 3 years) the prices they were paying us vs what we could get elsewhere got smaller and smaller.It got to the point that we simply just couldnt be exclusive to their strongarm bargain so we sold to other companies. Now the big company is moving in (to business) on top of us again. I have heard from others that this company has used this tactic numerous times. Free enterprise is one thing, I believe this is something different.
My name isXXXXX'm a licensed attorney. Glad to try and help out.
Sorry for your circumstances, truly. My heart goes out to you.
You pose a very logical question and I can absolutely understand your concerns. Unfortunately, however, the Sherman Antitrust Act, ch. 647, 26 Stat. 209, 15 U.S.C. §§ 1–7, is not helpful to one in your shoes. Here's why. In the words of Senator John Sherman, here's the purpose of the law: "To protect the consumers by preventing arrangements designed, or which tend, to advance the cost of goods to the consumer" (emphasis added by me). In other words, it doesn't work "in reverse", so to speak.
I am sorry.
Now, having said all of that, there could potentially be a state law tort cause of action to explore. If you want to find out for certain, you should schedule a consultation with a local business litigation attorney. Here's an economical and trustworthy resource for doing so:
Alabama State Bar Lawyer Referral Service
If you have a follow-up question or need clarification, please just say the word by using "reply" to reach me.
I hope all works out for you.
Happy New Year!
one of the companies that well sell to began construction on a yard in very close proximity to ours several years ago (they do the low scale like us and a mill ready version). We were informed by this company that if we sold our ferrous products exclusivly to them that they would halt construction. Being a small company we didnt have alot of options so we complied and they halted construction. As time went on (over the course of 3 years) the prices they were paying us vs what we could get elsewhere got smaller and smaller. (compared to fair market value)
Wouldnt there be something there as to the "tying" and "price discrimination" leading to a monopoly?
A Section 1 violation has three elements:
A Section 2 violation has two elements:
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