Gardner-Denver is the United States' largest manufacturer of ratchet wrenches. Rogers, a former Gardner-Denver employee, formed D.E. Rogers and began selling ratchet wrench parts. From 1964 to 1971, the two competed, with Rogers charging prices 30
percent below Gardner-Denver's. In August 1971, Gardner-Denver began a dual price system: Blue list - discounts for quantities of five or more (blue list parts were largely Rogers' parts); white list - non-Rogers' parts. The blue list was given only to Gardner-Denver sales reps. A price war followed with Rogers filing an antitrust suit. Are there any antitrust violations?
The court found no violation and that the effect of the price lists was to encourage competition. See D.E. Rogers Associates, Inc. v. Gardner-Denver, Co., 718 F.2d 1431 (6th Cir. 1983).
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A.
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