Background
The 1968 decision in Albrecht v. Herald Co. held that wholesalers could not require franchisees and retailers of their products to sell items at a certain price; advertisements regarding sales, therefore, always included the language "Available at participating retailers only."
The case before the court in 1997 involved a gasoline wholesaler and Chicago service station. State Oil Co. attempted to force the gasoline station owner, Barkat Khan, to sell State Oil's product at certain prices; Khan resisted and filed suit under anti-trust law.
Khan won his case in the United States Court of Appeals in Chicago, presided over by Judge Richard Posner. Posner, however, mocked the Supreme Court's 1968 ruling on the matter in his decision, calling it "unsound when decided," "moth-eaten," and "increasingly wobbly" in application. Posner nevertheless abided by the Supreme Court's earlier (1968) decision, saying that its decision was the law until the Court overruled its previous decision.
Read more about this topic: State Oil Co. V. Khan
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