Monsanto Co. v. Spray-Rite Service Corp.
United States Supreme Court
465 U.S. 752 (1984)
Monsanto (defendant) sold agricultural herbicides through distributors, including Spray-Rite (plaintiff), which bought in bulk and resold at a discount. After competing distributors complained about Spray-Rite's discount pricing, Monsanto stopped selling to Spray-Rite in 1968, and Spray-Rite eventually went out of business in 1972, then sued alleging Monsanto conspired with other distributors to fix prices in violation of Sherman Act section 1. A jury found for Spray-Rite, and the court of appeals affirmed, finding sufficient evidence of a price-fixing conspiracy; Monsanto appealed.
Whether an inference of concerted action under Sherman Act section 1 requires direct or circumstantial evidence that the defendant and others were engaged in an unlawful scheme to restrain competition.