Preserving Rule Of Reason Against 'Cost-Based' Challenge

Law360, New York (December 18, 2012, 12:28 PM EST) -- Courts continue to wrestle with whether to apply “price-cost” tests to allegedly anti-competitive conduct in antitrust cases. The result is a jurisprudence that oftentimes creates more questions for counselors and litigants than it answers. This continuing struggle was most recently on display in a decision issued in September by the U.S. Court of Appeals for the Third Circuit in the case ZF Meritor LLC v. Eaton Corporation.


The case arose out of allegedly anti-competitive practices within the North American market for heavy-duty (“HD”) truck transmissions....
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