Miracle-Gro Maker Off Hook For Trade Restraint Claims

Law360, New York (March 5, 2010, 4:09 PM EST) -- The Scotts Co., maker of Miracle-Gro, did not restrict trade when it blocked a nationwide discount supplier from selling time-release fertilizer, a federal appeals court has found.

A three-judge panel in the U.S. Court of Appeals for the Third Circuit on Thursday ruled that Scotts had the right to terminate U.S. Horticultural Supply Inc.'s distributorship and seek a higher price for its products.

Plaintiff USHS failed the “rule of reason” test requiring it to demonstrate adverse, anti-competitive effects within the relevant product and geographic markets, the...
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