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United States v. Jerrold Electronics Corp.

United States District Court for the Eastern District of Pennsylvania
187 F. Supp. 545 (E.D. Pa. 1960)


Facts

Jerrold Electronics Corporation (Jerrold) (defendant) was a seller of television-antenna systems, including a community-antenna system. When Jerrold first began selling community-antenna products, Jerrold only offered the products for sale as an entire system. The community-antenna system included a service contract, which was necessary at the time due to the unreliability of the equipment making up the system. In the years after Jerrold’s implementation of the single-system policy for the community-antenna products, the equipment became more reliable, such that a service contract was no longer necessary. Jerrold continued to sell the products exclusively as a single system, however, and the United States (plaintiff) eventually brought an action against Jerrold, claiming that Jerrold’s sales policy was an unlawful tying arrangement in violation of the Sherman Act.

Rule of Law

Issue

Holding and Reasoning (Van Dusen, J.)

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