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Sealy, Inc. was a joint venture of North American mattress manufacturers. It lic

ID: 338477 • Letter: S

Question

Sealy, Inc. was a joint venture of North American mattress manufacturers. It licensed use of Sealy trademarks to its owners, and received royalties in return. With the royalties, it provided its owners with national advertising, product development services, engineering assistance, sales training, and a means of central negotiation for selling to national retail organizations and purchasing certain mattress components..It also managed a minimum resale price maintenance policy and assigned exclusive territories to its owners.

If the U.S. government charged Sealy with violations of Section 1 of the Sherman Act, what do you think the outcome would be? Explain your answer, based on the following cases: (a) U.S. v. Topco 405 U.S. 596 (1972) (b) Rothery Storage & Van Co., et al. v. Atlas Van Lines, Inc. (c) Texaco Inc. v. Dagher. (d) American Needle, Inc. v. National Football League et al.

Explanation / Answer

Sealy, Inc. was a joint venture of North American mattress manufacturers. It licensed use of Sealy trademarks to its owners, and received royalties in return. With the royalties, it provided its owners with national advertising, product development services, engineering assistance, sales training, and a means of central negotiation for selling to national retail organizations and purchasing certain mattress components..It also managed a minimum resale price maintenance policy and assigned exclusive territories to its owners.

If the U.S. government charged Sealy with violations of Section 1 of the Sherman Act, what do you think the outcome would be? Explain your answer, based on the following cases: (a) U.S. v. Topco 405 U.S. 596 (1972) (b) Rothery Storage & Van Co., et al. v. Atlas Van Lines, Inc. (c) Texaco Inc. v. Dagher. (d) American Needle, Inc. v. National Football League et al.

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