Corning Glass Works v. Federal Trade Commission

STEVENS, Circuit Judge.

The Sherman Act condemns vertical, as well as horizontal, agreements in restraint of trade. However, by virtue of § 2 of the McGuire Act, two types of vertical agreements — those requiring a vendee to resell at prices fixed by his vendor, and those requiring the vendee to require his customers to resell only at fixed prices — are exempt from the antitrust laws if such agreements are lawful under applicable state law. 1 The question presented by this case is whether the state law which governs the legality of the latter type of agreement between a vendor and a vendee is…