Antitrust Status of Farmer Cooperatives: - USDA Rural Development ...

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vi Page CHAPTER 7. ODDS AND ENDS .........................285 Cooperatives, Em ployees and Members ................285 Cooperatives and C ontractors ........................286 Director, Employee, and Adviser Liability ................288 Supply Control ....................................289 Cooperative or Union? ..............................292 Capper Volstead and Exporting .......................297 Unprotected Cooperatives ...........................299 State Antitrust Enforcement ..........................310 Disruptive State Regulation ..........................311 Marketing Orders and Capper-Volstead .................315 Limits on FTC Jurisdiction ...........................316 Marketing Ag reeme nts ..............................317 CHAPTER 8. IN CONCLUSION, A LOOK TO THE FUTURE ..................................320 Guidelines for Collaborations Among Com petitors ........320 Butter S ettlement: The Future of A ntitrust En forcem ent? ...322 APPENDIX A: COOPERATIVE ANTITRUST CASES .........326 APPENDIX B: CASES BY CIRCUITS .....................335
Page APPENDIX C. FEDERAL ANTITRUST STATUTES ..........344 Sherman Act ......................................344 Federal Trade Commission Act .......................345 Clayton Act .......................................348 Capper-Volstead Act ...............................352 Cooperative Marketing Act of 1926 ....................355 Fisherman's Collective Marketing Act ..................358 Price Discrimination Act (Robinson-Patman) .............361 vii
Page 1 and 2: USDA United States Department of Ag
Page 3 and 4: Preface Antitrust law poses a speci
Page 5 and 6: Page CHAPTER 3. SHERMAN TO CAPPER-V
Page 7: Page Association Collaboration ....
Page 11 and 12: CHAPTER 1 HISTORICAL PERSPECTIVE 4
Page 13 and 14: Unlike the waterways, these early r
Page 15 and 16: 250,000. 5 The rapid influx of peop
Page 17 and 18: transcontinental service. This new
Page 19 and 20: to 800,000 members. One of the Gran
Page 21 and 22: faire. Corporate interests wanted t
Page 23 and 24: educed such conduct. Railroad conso
Page 25 and 26: long as the price received for each
Page 27 and 28: However, after the Civil War it fou
Page 29 and 30: Then the Alliance rejected the Roch
Page 31 and 32: CHAPTER 2. THE SHERMAN ACT As the d
Page 33 and 34: legislation introduced as the first
Page 35 and 36: produce evils, but if you take away
Page 37 and 38: signed into law by President Benjam
Page 39 and 40: ! Sec. 4 establishes federal court
Page 41 and 42: approach for determining which rest
Page 43 and 44: it didn't have to examine whether t
Page 45 and 46: fresh meat also violated the Sherma
Page 47 and 48: of this country.. .are presumed to
Page 49 and 50: 40 relevant facts. This is not beca
Page 51 and 52: (1984). 42 lated industries, in an
Page 53 and 54: found price fixing, then they shoul
Page 55 and 56: "...to raise or lower prices whatev
Page 57 and 58: Thus, the importance of the Capper-
Page 59 and 60:
Government need not show significan
Page 61 and 62:
Group boycotts were formally tabbed
Page 63 and 64:
AP. The United States sought an inj
Page 65 and 66:
cooperative provides safeguards suf
Page 67 and 68:
marketing agreement). The expelled
Page 69 and 70:
156 Reynolds at 21-22. 157 Joseph G
Page 71 and 72:
The rapid growth of fluid milk asso
Page 73 and 74:
the hands of 25 trustees who in tur
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assertions. Association counsel was
Page 77 and 78:
In 1891, Illinois enacted a statute
Page 79 and 80:
A month later, the Alabama Court of
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CONGRESS RESPONDS TO STANDARD OIL A
Page 83 and 84:
language recognizing in Federal law
Page 85 and 86:
As introduced, the provision coveri
Page 87 and 88:
194 Id. Rep. Volstead was, at this
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200 51 Cong. Rec. 9568 (1914). 201
Page 91 and 92:
When the bill reached the Senate, i
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that, unless they ceased dealing wi
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Virginia opinion, the Supreme Court
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CHAPTER 4. THE CAPPER-VOLSTEAD ACT
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90 price of any agricultural produc
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The Court then concluded that proce
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Republican from Kansas, Senator Art
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96 Section 1 defines and limits the
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244 59 Cong. Rec. 7852 (1920). The
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100 the tax in transit, and the con
Page 111 and 112:
! The Federal Trade Commission woul
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261 Id. 262 60 Cong. Rec. 369 (1920
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106 them. There were no storage fac
Page 117 and 118:
The Senate immediately requested a
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110 considers the duties and the or
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280 Id. 281 61 Cong. Rec. 1043 (192
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114 and adopted by the Senate to a
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Senator Kellogg, in his role as flo
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118 statistics and he, through his
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120 commerce. This provision of sec
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122 creameries... .but they are not
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Committee hearings general agreemen
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Debate continued the following day,
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admitted to membership in the assoc
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321 Id. 322 62 Cong. Rec. 2281 (192
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the same basis as to organization o
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unit' s first publication was L. S.
Page 145 and 146:
The House Agriculture Committee Rep
Page 147 and 148:
Two important issues arose during t
Page 149 and 150:
On the last day of Senate hearings,
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Committee (without the reference to
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The only Congressional debate on th
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terms than others in the same marke
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394 The influence of the nonstock a
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contained a provision in effect exp
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strike down the entire law in Conno
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This chapter begins with detailed c
Page 165 and 166:
All of the defendants based their d
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and marketing, in interstate commer
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First, the Court examined the scope
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with non-producers such as processo
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violation. In an unreported opinion
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appellate court turned to the full-
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At the time Capper-Volstead was ena
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Likewise, an absentee owner of a fa
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statutory "members" and do not stri
Page 183 and 184:
Two others elements of this decisio
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exchanges and either pack their own
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National Egg. 476 The third address
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The Government conceded all points
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the scope of agricultural "producer
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jority of failing to interpret Capp
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middlemen from price-fixing liabili
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510 Id., at page 2. 511 United Stat
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Foods, for processing into grape ju
Page 201 and 202:
Most producer associations claiming
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law, and perhaps antitrust law in g
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Any immediate impact on supply was
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530 Id. 531 15 U.S.C. § 15. 532 No
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The judge noted that the law appear
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cooperative to antitrust liability,
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organization can develop when these
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Exchange Lemon, TreeSweet and Silzl
Page 217 and 218:
Sunkist also challenged the trial j
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Exchange Act. 563 Bauer counterclai
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in the committee report, to provide
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The court found support for its dec
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policy, making sure the cooperative
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contractual arrangements with other
Page 229 and 230:
The second clause offers the option
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as "predatory" conduct. This sectio
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Section 1 and 2 claims when the par
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producers of agricultural commoditi
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authorized by the Secretary of Agri
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etween Embassy and Maryland & Virgi
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United States v. King. 634 Case law
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Several private cases alleging pred
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Further, the cooperative launched a
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The case was tried before a jury, w
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move on to another store still doin
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went into the facts of the case in
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absolute. 667 The last major issues
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672 119 F. Supp. at 907. Cited with
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monopoly power. It is the wrongful
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In 1960, producer associations in D
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were free to sell to whomever they
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exceeded demand. NFO made essential
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Justice also asserted AMPI engaged
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days notice. The court noted that m
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DI. 701 The practice was suspended
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The cooperatives appealed to the U.
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different premiums in different mar
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cover more than half of DI's reques
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properly was a matter of contract l
Page 279 and 280:
727 GVF Cannery v. California Tomat
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monopolize the fluid milk market in
Page 283 and 284:
741 687 F. 2d at 1183. But in a sub
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3. Mid-Am and AMPI threatened to su
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USDA Enforcement In Section 2, Cong
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separated from USDA' s activities t
Page 291 and 292:
Barriers to entry into the producti
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A Federal district court judge reje
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evidence in the record supported th
Page 297 and 298:
781 1983-2 Trade Cases (C CH) at 68
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the mechanism of a producer associa
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educed. This is not the type of inj
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Columbia River, challenging the con
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to refrain from purchasing such pro
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Sunkist and Reliance violated secti
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cooperative. The Department of the
Page 311 and 312:
cultural producers, have the benefi
Page 313 and 314:
Sewell claimed damages in excess of
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Sewell II. When the court decided t
Page 317 and 318:
308 pricing its product at or just
Page 319 and 320:
According to the decision, Agmax co
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issues such as "what is a producer?
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The opinions supporting the dismiss
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for failure to state a claim under
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its marketing agreements. Plaintiff
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CHAPTER 8: IN CONCLUSION, A LOOK TO
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commercializing innovations on at l
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The agreement enjoins DFA and Kelle
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Appendix A. Cooperative Antitrust C
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328 Pages Castorland M ilk & Cheese
Page 339 and 340:
330 Pages Isaly Dairy Company v. Un
Page 341 and 342:
332 Pages North Texas Producers Ass
Page 343 and 344:
334 Pages Whitney v. National Grape
Page 345 and 346:
336 SECON D CIRC UIT Pages Agritron
Page 347 and 348:
338 Pages National Broiler Marketin
Page 349 and 350:
340 EIGHT H CIRC UIT Pages Alexande
Page 351 and 352:
342 Pages Northern California Super
Page 353 and 354:
Appendix C. Federal Antitrust Statu
Page 355 and 356:
should not be entered by the Commis
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348 CLAYTON ACT 38 Stat. 730 (1914)
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(2) The court shall award the State
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352 CAPPER-VOLSTEAD ACT 42 Stat. 38
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injunction or other appropriate rem
Page 365 and 366:
(2) To conduct studies of the econo
Page 367 and 368:
358 FISHERMEN'S COLLECTIVE MARKETIN
Page 369 and 370:
to be had in considering such order
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