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Standard Fashion Company v. Magrane-Houston Company
United States Supreme Court
258 U.S. 346 (1922)
Standard Fashion Co. (Standard) (plaintiff) sold clothing patterns for women and children to retailers. Magrane-Houston Co. (Magrane) (defendant) was a retailer that sold Standard patterns. The contract between Standard and Magrane prohibited Magrane from selling any patterns other than Standard patterns. Standard had similar agreements with two-fifths of all pattern retailers in the United States. After selling Standard patterns for a few years, Magrane decided to stop selling Standard patterns and to sell patterns by a rival company instead. Standard sued Magrane in the United States District Court for the District of Massachusetts. Standard sought to enforce the contract and prohibit Magrane from selling other patterns. Magrane argued that the contract was unenforceable, because it violated the antitrust laws. The district court dismissed Standard’s suit, and the court of appeals affirmed the dismissal. Standard appealed to the United States Supreme Court.
Rule of Law
Holding and Reasoning (Day, J.)
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