{"ID":61679,"name":"United States v. Concentrated Phosphate Export Assn., Inc.","href":"https:\/\/api.oyez.org\/cases\/1968\/29","view_count":0,"docket_number":"29","additional_docket_numbers":null,"manner_of_jurisdiction":"Appeal","first_party":"United States","second_party":"Concentrated Phosphate Export Association, Inc. et al.","timeline":[{"event":"Argued","dates":[-37479600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/50851"},{"event":"Decided","dates":[-34711200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/50852"},{"event":"Granted","dates":[-55274400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/53801"}],"lower_court":null,"facts_of_the_case":"\u003Cp\u003EAfter World War II, the United States made funds available through the \u2018Marshall Plan\u2019 to many countries to pay for commodities sold by American companies and shipped from the United States and other free-world sources. Congress made foreign aid funds available to bring commodities to the Republic of Korea, beginning with the Mutual Security Act of 1954.\u003C\/p\u003E\n\u003Cp\u003EIn 1961, the Concentrated Phosphate Export Association (CPEA) organized to act as an export-selling agency for the concentrated phosphate products of its member corporations. CPEA organized under the Webb-Pomerene Act, which Congress passed to help American firms compete with foreign cartels. The process began when Congress allocated funds to various Agency for International Development (AID) programs. The United States thus directly financed the purchase of commodities allocated to Korea, approved via a complicated, tightly regulated application procedure. The United States assigned two of the CPEA contracts, and the Republic of Korea assigned the other nine, subject to detailed regulation by AID. The contracts only circulated in the United States.\u003C\/p\u003E\n\u003Cp\u003EThe United States filed an action to enjoin price fixing and business allocation activities among the CPEA\u2019s five major member corporations. The district court held that CPEA\u2019s sales were \u2018export trade\u2019 for the purposes of the Sherman Act; hence, although CPEA conceded that its members were coordinating their sales actions, CPEA did not violate the Sherman Act. On January 1, 1967, the State Department amended its regulations to preclude Webb-Pomerene associations from bidding on contracts where the procurement was limited to United States suppliers; in response, the CPEA dissolved on December 28, 1967, despite the district court\u2019s favorable ruling.\u003C\/p\u003E\n","question":"\u003Cp\u003E(1) Is the case moot because the CPEA dissolved and joint operations were no longer economically viable?\u003C\/p\u003E\n\u003Cp\u003E(2) Does the CPEA fall under the Webb-Pomerene Act\u2019s \u2018export trade\u2019 exemption because it is engaged in selling goods procured under the government\u2019s foreign aid program?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo and no. Justice Thurgood Marshall, writing for a 7-2 majority, held that the case was not moot. Although CPEA itself was no longer in operation in that form, the government sought injunctive relief against each of its individual members as well. Justice Marshall also noted that the new AID regulations did not apply to all contracts that the former members of CPEA might bid on. Moreover, the Court could not simply rely on the appellees\u2019 statement that joint operations would no longer be economically advantageous.\u003C\/p\u003E\n\u003Cp\u003EJustice Marshall also held that the CPEA did not fall within the Webb-Pomerene Act\u2019s \u2018export trade\u2019 exemption. He looked to the legislative history of the Act, noting that the Chairman of the Federal Trade Commission and the Act\u2019s two main sponsors specified that the Webb-Pomerene Act was not intended to injure American consumers. Hence, Congress did not mean its exemption to insulate transactions initiated, controlled, and financed by the American government. Justice Marshall rejected the CPEA\u2019s argument that they competed for contracts with foreign suppliers, noting that the governing statute required a preference for American procurement and that none of the major trading nations were allowed to compete for contracts.\u003C\/p\u003E\n\u003Cp\u003EJustice Byron White dissented, joined by Justice Potter Stewart. He argued that the goods sold by the CPEA were exported from the United States in any ordinary sense of the word \u2018export\u2019. He noted that AID regulations referred to receiving countries as \u2018importers\u2019 and to the transactions as \u2018exports\u2019.\u003C\/p\u003E\n\u003Cp\u003EJustice John Harlan took no part in the decision of the case.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":44339,"name":"Warren Christopher","href":"https:\/\/api.oyez.org\/people\/warren_christopher","view_count":0,"last_name":"Christopher","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"warren_christopher"},"advocate_description":"for the petitioner","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/22023"},{"advocate":{"ID":41731,"name":"Samuel W. 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