Copperweld Corp. v. Independence Tube Corp.

Copperweld v. Independence Tube
Supreme Court of the United States
Argued December 5, 1983 Decided June 19, 1984
Full case name	Copperweld Corp. v. Independence Tube Corp.
Holding
A parent company and its wholly owned subsidiary are incapable of conspiracy as defined by the Sherman Act.
Court membership
Chief Justice Associate Justices
Case opinions
Majority	Burger, joined by 5
Laws applied
Sherman Act

Copperweld Corp. v. Independence Tube Corp., 467 U.S. 752, 777 (1984)^[1], was a major U.S. Supreme Court antitrust case that held that a parent company is incapable of conspiring with its wholly owned subsidiary for purposes of Section 1 of the Sherman Act because they cannot be considered separate economic entities.

Section 1 of the Sherman Act states that "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal." However, for a condition of conspiracy to exist, there must be at least two parties involved. Copperweld held that separate incorporation was not enough to render a parent and its subsidiary capable of conspiring, since forcibly the economic interests of a wholly owned subsidiary must be those of its parent. It does not apply to partially owned subsidiaries.^[2]

References

1. ^ "Copperweld Corp. v. Independence Tube Corp., 467 US 752 - Supreme Court 1984". Google Scholar. http://scholar.google.com/scholar_case?case=13539919251776882734&hl=en&as_sdt=2&as_vis=1&oi=scholarr. Retrieved 2011-07-11. 
2. ^ Columbia Law Review, Vol. 86, No. 1, Jan., 1986