Addyston Pipe and Steel Co. v. United States, 85 F. 271 (6th Cir. 1898), was an important case in which the United States Court of Appeals for the Sixth Circuit determined that U.S. antitrust laws, as set forth in the Sherman Antitrust Act, were to be governed by a rule of reason. The opinion was written by Chief Judge William Howard Taft (who later became President of the United States, and then Chief Justice of the United States Supreme Court). Taft's reasoning was eventually adopted by the Supreme Court as the proper interpretation of the Sherman Act. // Case citation is the system used in common law countries such as the United States, England and Wales, Canada, New Zealand Australia and India to uniquely identify the location of past court cases in special series of books called reporters. ... The United States Court of Appeals for the Sixth Circuit is a federal court with appellate jurisdiction over the following United States District Courts: Western and Eastern Districts of Kentucky Western and Eastern Districts of Michigan Northern and Southern Districts of Ohio Western, Middle, and Eastern Districts of Tennessee The... 1898 (MDCCCXCVIII) was a common year starting on Saturday (see link for calendar) of the Gregorian calendar (or a common year starting on Monday of the 12-day-slower Julian calendar). ... The United States Court of Appeals for the Sixth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts: Western and Eastern Districts of Kentucky Western and Eastern Districts of Michigan Northern and Southern Districts of Ohio Western, Middle, and Eastern Districts of Tennessee... Motto: E pluribus unum (1789 to 1956) (Latin: Out of Many, One) In God We Trust (1956 to present) Anthem: The Star-Spangled Banner Capital Washington, D.C. Largest city New York City Official language(s) None at federal level; English de facto Government • President • Vice President Federal republic George... Antitrust or competition laws are laws which seek to promote economic and business competition by prohibiting anti-competitive behavior and unfair business practices. ... The Sherman Anti-Trust Act, formally known as the Act of July 2, 1890, ch. ... The rule of reason is a doctrine developed by the United States Supreme Court in its interpretation of the Sherman Antitrust Act. ... William Howard Taft (September 15, 1857 – March 8, 1930) was an American politician, the 27th President of the United States, the 10th Chief Justice of the United States, and a leader of the conservative wing of the Republican Party. ... The presidential seal was used by president Hayes in 1880 and last modified in 1959 by adding the 50th star for Hawaii. ... The Chief Justice of the United States is the head of the judicial branch of the government of the United States, and presides over the Supreme Court of the United States. ... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States...

Facts

The defendants were pipemakers who were operating in agreement, so that when municipalities offered projects available to the lowest bidder, all companies but the one designated would overbid, thus guaranteeing the success of the designated low bidder (although it was still possible for a company outside the group to win).SEX In Common law, a defendant is any person who is required to answer the complaint of a plaintiff in a civil suit or any person who has been named in a criminal information or criminal complaint and stands accused of violating a criminal statute. ... Look up pipe in Wiktionary, the free dictionary. ... A bid price is a price offered by a buyer/bidder when he buys a good. ...

Issue

The defendants asserted that this was a reasonable restraint of trade, and that the Sherman Act could not have meant to prevent such restraints.

Opinion of the court

The Sixth Circuit noted that it would be impossible for the Sherman Act to prohibit every restraint of trade, for that would even encompass employment contracts which, by their nature, restrain the employee from working elsewhere during the time that they are being paid to work for the employer. Therefore, reasonable restraints were permitted, but this would only apply if the restraint was ancillary to the main purpose of the agreement. No conventional restraint of trade can be enforced unless:

1. it is ancillary to the main purpose of the lawful contract; and
2. it is necessary to protect enjoyment of legit fruits or to protect from dangers.

If the primary purpose is to restrain trade, then the agreement is invalid, and in this case, the restraint was direct, and therefore invalid.

Later developments

This case was appealed to the Supreme Court as Addyston Pipe and Steel Company v. United States, 175 U.S. 211 (1899)^[1], but in that case the defendants did not attack the reasoning of the Sixth Circuit. Instead, they argued that there had been no interstate commerce (to which the Sherman Act was restricted). The Supreme Court disagreed, noting that there was interstate shipping of the pipes being sold. // Case citation is the system used in common law countries such as the United States, England and Wales, Canada, New Zealand Australia and India to uniquely identify the location of past court cases in special series of books called reporters. ... 1899 (MDCCCXCIX) was a common year starting on Sunday (see link for calendar). ...

External links

• ↑ 175 U.S. 211 (Text of the opinion on appeal on Findlaw.com)