Sugar Institute, Inc. v. United States
United States Supreme Court
297 U.S. 553 (1936)
- Written by John Reeves, JD
Facts
In the sugar-refinement industry, sugar was traditionally purchased via a trade practice known as moves. Under this practice, a refiner would publicly announce that it would increase the selling price, to take effect at a specific time. A grace period followed, during which sugar could be bought at a lower price. But prior to this increase, multiple refiners would enter into secret concessions with each other on a lower price. To put an end to this, the refiner’s trade association, Sugar Institute, Inc. (defendant), implemented a rule mandating that all trade moves needed to be adhered to once announced—there could be no deviation from the announced price. The United States (plaintiff) brought a lawsuit against Sugar Institute seeking to enjoin it from enforcing this requirement on the ground that the requirement amounted to price-fixing. The district court granted the injunction and forbade Sugar Institute from mandating the refiners adhere to a previously announced price. Sugar Institute appealed.
Rule of Law
Issue
Holding and Reasoning (Hughes, C.J.)
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