State Oil Co. v. Khan

State Oil (defendant) leased a gas station to Khan (plaintiff), with the lease requiring Khan to purchase gasoline at a suggested price minus a fixed rebate, while Khan could charge customers any price but had to return any amount charged above State Oil's suggested price as a rebate; after Khan fell behind on lease payments and State Oil began eviction proceedings, a court-appointed receiver operating the station generated higher profits by charging more for premium gas without the price restraint. Khan sued, alleging State Oil's pricing arrangement was a per se antitrust violation as vertical maximum price fixing under prior Supreme Court precedent, and the court of appeals, following that precedent, ruled for Khan; State Oil appealed.