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Utah Pie Company v. Continental Baking Company
United States Supreme Court
386 U.S. 685 (1967)
In the Salt Lake City Area, several companies competed in the market for frozen pies. Utah Pie Co. was a small family-owned company (plaintiff). Continental Baking Company, Carnation Company, and Pet Milk (defendants) were large, national companies. Utah Pie sued the large pie companies. Utah Pie accused the defendants of price discrimination in the Salt Lake City market. Utah Pie alleged the defendants charged substantially lower prices in the Salt Lake City market than in other areas of the country. Utah Pie presented evidence indicating the defendants were pricing below cost to drive Utah Pie out of business. However, during the time of the alleged price discrimination, Utah Pie’s sales continued to increase. The jury returned a verdict in favor of Utah Pie. The court of appeals reversed, holding that Utah Pie’s increased sales precluded a finding of injury to competition.
Rule of Law
Holding and Reasoning (White, J.)
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