Dr. Miles Medical Co. v. John D. Park & Sons Co.
| Dr. Miles Medical Co. v. John D. Park & Sons Co. | |
|---|---|
 | |
| Argued January 4–5, 1911 Decided April 3, 1911 | |
| Full case name | Dr. Miles Medical Co. v. John D. Park & Sons Co. |
| Docket no. | 72 |
| Citations | 220 U.S. 373 (more) |
| Holding | |
| Vertical price restraints are illegal per se. | |
| Court membership | |
| |
| Case opinions | |
| Majority | Hughes, joined by White, Harlan, McKenna, Day, Van Devanter, Lamar |
| Dissent | Holmes |
| Lurton took no part in the consideration or decision of the case. | |
| Laws applied | |
| Sherman Antitrust Act | |
Overruled by | |
| Leegin Creative Leather Products, Inc. v. PSKS, Inc. | |
Dr. Miles Medical Co. v. John D. Park & Sons Co., (220 U.S. 373) (1911),[1] was a United States Supreme Court case on anti-trust grounds that ruled that resale price maintenance, a form of vertical restraint, is illegal per se.[1][2]
The Dr. Miles Medical Co. (Dr. Miles), now Miles Laboratories, was founded in 1884. In an era when most products were snake oil, Dr. Miles invented a patent medicine that had an actually useful, if somewhat toxic, active ingredient: bromides.[3]
John D. Park & Sons Co. (Park & Sons) was a discount drug reseller that sought to profit off the advertising of Dr. Miles' remedies while selling Dr. Miles products at rock bottom prices. While lower prices drove sales for Park & Sons, it cut into the profits of Dr. Miles. To fix this, Dr. Miles made an agreement with all sellers of its products that they would be required to sell the products at a minimum price.[3]
References
[edit]- ^ a b Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U.S. 373 (1911)
- ^ "Supreme Court Overrules 96 Year-Old Rule in Dr. Miles and Holds Vertical Price Agreements Are Neither Per Se Illegal Nor Per Se Legal, But Subject to Case-By-Case Test". Antitrust Law Blog. July 5, 2007. Retrieved July 20, 2022.
- ^ a b Bauer, Mark D. (August 26, 2007). "Whither Dr. Miles?". Loyola Consumer Law Review. 20 (1). doi:10.2139/ssrn.1009972. S2CID 152285666. SSRN 1009972 – via papers.ssrn.com.
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