Eli Lilly & Co. v. Sav-On-Drugs, Inc.

366 U.S. 276, 81 S. Ct. 1316, 6 L. Ed. 2d 288 (1961)

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Eli Lilly & Co. v. Sav-On-Drugs, Inc.

United States Supreme Court
366 U.S. 276, 81 S. Ct. 1316, 6 L. Ed. 2d 288 (1961)

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Facts

Eli Lilly and Company, an Indiana corporation, (plaintiff) sued Sav-On-Drugs, Inc., a New Jersey corporation, (defendant) in state court in New Jersey to enjoin Sav-On from selling Eli Lilly’s products in New Jersey at prices lower than the prices fixed in minimum retail contracts with other New Jersey drug retailers. The New Jersey trade of Eli Lilly’s products was done through both interstate and intrastate channels involving New Jersey wholesalers. Sav-On moved to dismiss the complaint because Eli Lilly had not first acquired a certificate to authorize Eli Lilly to do business in New Jersey. Eli Lilly opposed the motion and argued that its business in New Jersey was strictly interstate. The trial court disagreed and dismissed the case, and the New Jersey Supreme Court affirmed. Eli Lilly appealed.

Rule of Law

Issue

Holding and Reasoning (Black, J.)

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