Ross-Simmons sued Weyerhaeuser for antitrust violation for driving it out of business. The claim was that Weyerhaeuser

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Ross-Simmons sued Weyerhaeuser for antitrust violation for driving it out of business. The claim was that Weyerhaeuser consistently outbid Ross for logs to process into lumber. Ross contended this was predatory behavior-Weyerhaeuser bid higher to get control of the logs, so Ross could not compete in the lumber market. Weyerhaeuser used state-of-the-art technology to increase efficiency and captured 65 percent of the red alder log market in the area around Longview, Washington. The jury held for Ross, awarding it $26 million, which was tripled. The appeals court affirmed. Weyerhaeuser appealed, claiming the holding violated the Supreme Court's previous decision in the Brooke Group case.

1. The Supreme Court held that there was no basis for an antitrust suit based on a claim of predatory bidding. Since Ross was driven from the market, why did its claim not hold?
2. If Weyerhaeuser was more profitable than Ross, why could Ross not show that Weyerhaeuser had an unfair advantage in the market?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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