Autos: Open Season

The beleaguered auto industry last week came under stress from a new quarter—with serious implications for its nationwide dealer-franchise setup. In a unanimous decision, the Supreme Court ruled that General Motors and three Chevrolet dealers' associations, in fighting discount-house car sales in the Los Angeles area in 1960-61, had violated the Sherman Antitrust Act in "a classic conspiracy in restraint of trade."

Wayward Dealers. The case involved an operation in which a dozen Los Angeles area Chevrolet dealers, beginning in the late '50s, sold cars to discounters who in turn sold the cars to the public. The discounters drummed up business...

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