Continental T.V., Inc. v. GTE Sylvania Inc.

Facing declining sales, Sylvania (defendant) shifted from wholesalers to a franchise system restricting retailers to reselling from specific authorized locations, a plan that successfully increased its market share; when Sylvania authorized a new franchise near Continental T.V.'s (plaintiff) existing location and ignored Continental's protests, their relationship deteriorated into a credit dispute, and Continental counterclaimed that Sylvania's location-restriction franchise plan violated antitrust law. A jury, instructed under a per se standard from United States v. Schwinn & Co., found for Continental, but the court of appeals reversed, finding no per se violation.