Question

Briefly discuss what the International Salt Case was all about. Specifically, identify what was the charge brought against International Salt, how International Salt was violating the law, which specific law it violated, and how the Supreme Court ruled. HTML Editor

Answer 1

The International Salt company had acquired patent for the machines which it was using to process the salts. Later, the international salt company made it necessary for anyone who is leasing machines from them, to also buy salts from them as well. Therefore, the government of United state of Americal filed a lawsuit against International Salt Company for tying th purchase of salt as mandatory along with the machine. In defence, the argument put forth by the salt company was that this tying was necessary because any substandard qualityof salt will damage the machines. Along with price fixing being considered as unreasonable, it was also deemed unreasonale to strike off competetion from any other market. It violated the law which prohibits the creation of monopoly. Therefore, it violated the Sherman anti-trust Act. The supreme court ruled that tying to purchase one product with another was a clear violation of the law. Also, even if a particular quality of salt were required for effective functioning of the machine, the competitors should be provided with an opportunity to meet those standards. Hence, by this ruling, the supreme courth gave verdict against the formation of monopoly.