Submit a short paper (3-5 pages, essay form, double-spaced): What were the issues in the Monsanto...

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Submit a short paper (3-5 pages, essay form, double-spaced):What were the issues in the Monsanto Company v. Spray-Rite ServiceCorporation case? What was the significance of the Court's rulingin this case on channel practices?

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answer In Monsanto Co v SprayRite Service Corp 1984 465 US 752 a distributor of agricultural chemicals alleged that the manufacturer had terminated the distributorship pursuant to a resale price maintenance agreement with other distributors The jury found that the manufacturer had violated the Sherman Act and the circuit court of appeals affirmed the judgment holding that the manufacturers termination of the distributorship in response to complaints from other distributors was sufficient evidence from which to infer a conspiracy to set resale prices Monsanto at pp 757759 104 S Ct at pp 14671468 The Supreme Court rejected that analysis but affirmed the judgment based on a more rigorous standard of proof designed to distinguish independent action by the manufacturer from pricefixing agreements Id at pp 759 763 104 S Ct at pp 1468 1470 The Monsanto court first distinguished between concerted and independent action Monsanto supra 465 US at p 761 104 S Ct at p 1469 It noted the statutory requirement of a contract combination or conspiracy to establish a Sherman Act violation and stated that the act therefore does not proscribe independent action Monsanto at p 761 citing 15 USC 1 It also See Answer

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