Operations

Court of Appeals Favors Ford in Its Decision

Posted on May 14, 2004 by LCT Staff - Also by this author - About the author

ST. LOUIS, Mo. – A split panel of the Eighth Circuit on appeal reversed a jury verdict that was originally in favor of a limousine manufacturer.

Craftsmen Limousine Inc. took Ford Motor Company to court because the company alleged Ford lobbied to limit membership to a limousine manufacturer trade association, LIMO, because it was not part of Ford’s QVM program, and membership was for those who belonged to it.

In addition, with pressure from LIMO, the leading industry publications refused to accept advertising from non-LIMO members or to allow their presence at industry trade shows, thus preventing Craftsmen from advertising vehicles and supposedly costing the company substantial sales.

Craftsmen argued that the agreement between Ford and the members of LIMO to limit membership and to pressure magazines not to allow advertisement constituted an illegible horizontal restraint of trade, and the jury, which was instructed that such agreements constituted a per se violation of the Sherman Act, agreed and awarded damages to Craftsmen.

On appeal, in a 2 to 1 decision, the Eighth Circuit reversed. In addressing the issue of the proper legal standard, the majority ruled that exclusion through standard setting ordinarily is judged under a rule of reason approach.

In this case, the issue centered around Ford's contention that the standards in question were driven by safety concerns, not efforts to restrain competition.

The majority found that it did not need to determine whether the subject standards actually had pro-competitive effects but rather found that "because the alleged restraints were arguably based, at least in part, on safety concerns, they may have had some pro-competitive effects and thus use of the per se legal standard was inappropriate.

View comments or post a comment on this story. (0 Comments)

More News

Arkansas Operation Recognized As Small Business of the Year

Pinnacle Car Services, Inc. recieved the accolade from the Greater Bentonville Bella Vista Chamber of Commerce.

How To Make Your Buses Comply With The Latest Rules

eNews Exclusive: Joe Guinn guides operators on the best ways to prepare for the large leap from sedans and SUVs to buses and motorcoaches.

What Is The Future Of The New Luxury Traveler?

There is a growing demand for more human connectedness and meaningful experiences for both adults and children.

DWIs Down In One City Since Uber Launched

Springfield, Mo., saw an average of 47 drunk driving arrests per month down from 55 per month in 2016.

Party Bus Entrepreneur On The Road To Growth

Operator with military experience launched her Mobile, Ala.-area business with a custom-built vehicle.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - May 2017 $12.95 Post International LCT Show Issue COVER STORY: * Best Operators of 2017: Their Winning Secrets Revealed * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close