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Fortner Enterprises, Inc. v. United States Steel Corp.
United States Supreme Court
394 U.S. 495, 89 S. Ct. 1252, 22 L. Ed. 2d 395 (1969)
The homes division of United States Steel Corporation (US Steel) (defendant) sold prefabricated houses, while its wholly owned subsidiary, United States Steel Homes Credit Corporation (Credit Corp.) (defendant), offered financing for the purchase of US Steel houses. Credit Corp. would only offer loans to those who had purchased a set number of prefabricated homes offered for sale by US Steel. Fortner Enterprises, Inc. (plaintiff) sued US Steel, seeking damages and an injunction against the sale practices of US Steel, on grounds that this arrangement between US Steel and Credit Corp. was an illegal tying arrangement in violation of the Sherman Act. Fortner alleged that the loans it had obtained from Credit Corp. were conditioned on Fortner purchasing prefabricated houses from US Steel, to be erected on the lots it purchased using the loans from Credit Corp. The district court held that Fortner had failed to establish that the arrangement was a per se illegal tying agreement and granted summary judgment to US Steel. The court of appeals affirmed the judgment, and Fortner appealed to the United States Supreme Court.
Rule of Law
Holding and Reasoning (Black, J.)
Dissent (Fortas, J.)
Dissent (White, Harlan, J.J.)
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