10th Circuit OKs Grocery Store Food, Gas Bundling

Law360, New York (April 25, 2008, 12:00 AM EDT) -- A supermarket is legally entitled to sell gasoline below cost if the sale is contingent on the purchase of groceries above cost, a U.S. appeals court has ruled, reversing a federal jury's verdict that sided with gas station competitors.

In an opinion issued Friday, a three-judge panel of the U.S. Court of Appeals for the Tenth Circuit said Colorado's amended unfair competition statute allowed grocery stores to sell fuel to customers at bargain prices as long as the entire transaction resulted in a profit.

The ruling...
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