Blomkest Fertilizer, Inc. v. Postash Corp. of Saskatchewan, Inc. case brief notes
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Plus Factor:
Evidence For
Evidence Against
Communication:
- Periodic price verification calls - (high level executive calls beginning 1987)
- Solicitations
- Calls were subsequent to the price increase
- Calls infrequent, sporadic
No legit justification:
- Price was not the projected price expected based upon the Suspension Agreement
- No justification for the price verification calls
- Alternative explanation based upon the Suspension Agreement
- Privatization of PCS explains change in behavior
Irrational w/o Agreement:
- "market correction" program that lowers
prices to deter "cheating"
Market Structure:
- Oligopoly
- Fungible product (potash)
- Inelastic demand? Was there evidence of this?
- Barriers to entry (again, was there evidence?)
- Industry excess capacity
- Cartel is not inevitable in oligopoly
- Industry excess capacity
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