Ever since the passage of the Sherman Act, the courts have consistently refused to permit the requirements of antitrust to be circumvented by the easy expedient of dressing a sale in the vestments of a sham agency agreement. In Dr. Miles Medical, where the Supreme Court first held vertical price fixing unlawful, the seller and buyer denominated their agreement as an "agency," but the Court properly concluded that it was, in fact, a sale. Likewise, in Standard-Magrane, the first occasion on which the Court considered section of the Clayton Act, the seller purported to appoint his customers as agents. Again, the Court cut through to the heart of the transaction and found that, despite its formal trappings, it was not a real agency.
Recent Antitrust Developments-1964,
Mich. L. Rev.
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