The defendants did not originally reach an agreement to divide up the market by themselves. Schwinn made studies and surveys and laid out the territories unilaterally. In the late 1960s, the Varsity and Continental pioneered the use of auxiliary brake levers, which allowed the rider to rest hands on the straight, horizontal center section of the ram’s horn handlebars, yet still have braking control.
We agree, and upon remand, the decree should be revised to enjoin any limitation upon the freedom of distributors to dispose of the Schwinn products, which they have bought from Schwinn, where and to whomever they choose. The principle is, of course, equally applicable to sales to retailers, and the decree should similarly enjoin the making of any sales schwinn ebike to retailers upon any condition, agreement or understanding limiting the retailer’s freedom as to where and to whom it will resell the products. But the Court inexplicably turns its back on the values of competition by independent merchants and the flexible wisdom of the rule of reason when dealing with distribution effected through sales to wholesalers.
The Government does not contend that a per se violation of the Sherman Act is presented by the practices which are involved in this appeal (that is, without reference to the practice which the lower court enjoined and which is not before us). Accordingly, we are remitted to an appraisal of the market impact of these practices. The plaintiff has failed to prove the vital part of the price-fixing conspiracy upon which plaintiff has through counsel most diligently and fervently persisted. When a few witnesses come in and tell orally of fixed prices and threats, and then the records of actual sales come in literally from scores of retailers, the court has no alternative but to find there was no price-fixing scheme through a conspiracy between the defendants or otherwise. Price cutting was no doubt a factor in some cases where franchises of dealers in fair trade states were canceled, but in each case of franchise cancellation in evidence there was shown to be a more potent reason, and generally there were several other good and sufficient grounds for the cancellation.
Over the years, Schwinn has empowered millions of people, earning a special place in the hearts and minds of generations of riders. We have spent over a century building the bicycle industry into what it is today, and we’re not done yet. The limited run of Paramounts and the
foundation of the Waterford and Gunnar models connect the company to its
lineage as an offspring of the once-dominant Schwinn line. At one time, Schwinn
employed 2,000 people in its Chicago factory. That’s about the number of bikes
that Waterford now produces in a year. The results are touring bikes, road bikes,
cyclocross bikes and mountain bikes–for Rivendell, Boulder Bicycle, Georgena
Terry Bicycles, Shinola, and Milwaukee Bicycle Co., in addition to filling
orders for Waterford’s own brands, Waterford and Gunnar.
Then they found that for small quantities of bicycles and parts they could get quicker and more efficient service, at little more expense, by dealing with bicycle distributors who came to be known as cycle distributors. They found that by dealing with cycle distributors, they could get a variety of brands and interchangeable parts, which are made by other companies than bicycle manufacturers, who are in fact assemblers of bicycles and buy their parts from numerous parts manufacturers. However, the new retail bicycle merchants continued to buy directly from the various bicycle manufacturers, such as Schwinn, Monarch, Huffman, etc.
From “walk ‘n’ roll” kids bikes to the Le Tour Legacy, Schwinn offer a comprehensive line of bikes that suit the needs of riders across the United States and around the world. Schwinn bikes are built to the Schwinn Quality standard, with over 100 years of cycling heritage, passion and expertise. This standard is the foundation of their commitment to creating the best bikes available today, and they are confident that you will experience our devotion to cycling every time you ride a Schwinn. “Shinola only wants to bring to market
high-quality products so we feel really lucky to be able to make the frames
here,” Yaeger says.
Nor is this a case of territorial or dealer restrictions accompanied by price fixing, for here the issue of unlawful price fixing was tendered, litigated, decided against the appellant, and appellant has not appealed. If it were otherwise if there were here a finding that the restrictions were part of a scheme involving unlawful price fixing, the result would be a per se violation of the Sherman Act. United States v. Sealy, Inc., ante, p. 350; United States v. Bausch & Lomb Co., U.S. 707, 724
(1944).