{"ID":61227,"name":"United States v. Arnold, Schwinn \u0026 Company","href":"https:\/\/api.oyez.org\/cases\/1966\/25","view_count":0,"docket_number":"25","additional_docket_numbers":null,"manner_of_jurisdiction":"Appeal","first_party":"United States","second_party":"Arnold Schwinn \u0026 Co., Schwinn Cycle Distributors Association","timeline":[{"event":"Argued","dates":[-85255200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/50179"},{"event":"Decided","dates":[-80679600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/50180"},{"event":"Granted","dates":[-128455200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/53749"}],"lower_court":null,"facts_of_the_case":"\u003Cp\u003EThe United States brought an antitrust action against Arnold, Schwinn \u0026amp; Co. and its distributor Schwinn Cycle Distributors Association.  Arnold only allowed distributors to sell its products to approved dealers.  The United States complaint attached this practice as an unlawful restraint on trade.  The district court held that this practice was unlawful as to sales from distributors to dealers, but allowed for sales directly from Arnold to dealers.  The Supreme Court heard this case on direct appeal\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes Schwinn\u2019s practice of only selling products to approved dealers violated the Sherman Act?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ESometimes.  In a 5-2 decision, Justice Abe Fortas wrote the majority opinion reversing the lower court.  The Supreme Court held that it is unreasonable for a manufacturer to restrict where its products are sold after it has transferred title and responsibility for loss.  In situations where Arnold retains title, and the dealer acts as an agent or salesperson, those restrictions are not a restraint on trade.  Justice Potter Stewart wrote a partial dissent, expressing disagreement with the majority\u2019s argument that Arnold\u2019s practices become illegal when carried out through a distributor.  Justice John M. Harlan joined in the partial dissent.  Justice Tom C. Clark and Justice Byron R. White did not participate.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":40232,"name":"Richard A. Posner","href":"https:\/\/api.oyez.org\/people\/richard_a_posner","view_count":0,"last_name":"Posner","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"richard_a_posner"},"advocate_description":"for the appellant","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/21965"},{"advocate":{"ID":39694,"name":"Robert C. 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