Ford Motor Company v. United States (1972) Can anyone summarize this?
I'm working on a project at my school, and I need a good summary of the case Ford motor Company v. the United States that was conducted in 1972. I tried reading the manuscripts, but they are long and confusing for me.
Please include sources if you can!
Thanks so much:)
- sgt_cookLv 710 years agoFavorite Answer
Basically, the case resolved around the acquisition of Autolite spark plug by Ford Motor corp. The district court found that such an acquisition gave Ford Motor an unfair advantage in the auto market. The reason being, is stated in the following lines from the summary: "The brand used in the spark plug replacement market (aftermarket) has historically been the same as the original equipment (OE) brand. Autolite and other independents had furnished manufacturers with OE plugs at or below cost, seeking to recoup their losses by profitable aftermarket sales. Ford, which previously had bought all its spark plugs from independents and was the largest purchaser from that source, made the Autolite acquisition in 1961 for the purpose of participating in the aftermarket."
The Supreme Court held:
1. The District Court correctly held that the effect of Ford's acquisition of the Autolite spark plug assets and trade name may be substantially to lessen competition in the spark plug business, and thus to violate § 7 of the Celler-Kefauver Antimerger Act; and that the alleged beneficial effects of the merger did not save it from illegality under that provision, United States v. Philadelphia National Bank, 374 U. S. 321. Pp. 405 U. S. 569-571.Source(s): supreme.justia.com/us/405/562/case.html