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- W656581202 abstract "OF THE UNITED STATES 584-85 (94th ed. 1973). [E]arly-twentieth-century American farming epitomized pure competition model. Note, supra note 10, at 352. 92 See, e.g., REPORT OF THE ATTORNEY GENERAL'S NATIONAL COMMITTEE TO STUDY THE ANTITRUST LAws 306 (1955); Levi & Sporleder, Some Recent Interpretatiors of CapperVolstead Act: A Legal-Economic Analysis, 14 IDAHO L. REV. 435, 439 (1978). 93 In 1977, cooperatives had combined sales of over $43,584,000. STATISTICAL ABSTRACT OF THE UNITED STATES 704 (101st ed. 1980). Seven cooperatives were listed in Fortune 500 in 1978. Farmer Cooperatives 14 (July 1979). Furthermore, in 1974-1975, cooperatives handled about 27% of agricultural products marketed in United States. FARMER COOPERATION SERVICE, U.S. DEP'T OF AGRICULTURE, STATISTICS OF FARMER COOPERATIVES v (F.C.S. Research Report 39, 1977). Regional cooperatives accounted for between 71% and 100% of sales in following commodities in 1973: sugar (100%), tobacco (100%), nuts (96%), livestock and products (88%), cotton and products (76%), dairy products (75%), rice (74%), poultry products (73%), and beans and peas (71%). FARMER COOPERATION SERVICE, U.S. DEP'T OF AGRICULTURE, COOPERATIVE GROWTH: TRENDS, COMPARISONS, STRATEGY 25 (F.C.S. Information 87, 1973). See generaly Note, supra note 10, at 342-43. 94 See 5 H. TOULMIN, supra note 59, § 6.3, at 345; Note, supra note 10, at 355, 357. 95 1979 REPORT, supra note 2, at 258-60. Between 1950-1951 and 1974-1975, COOPERA TIVE EXEMPTION ling case for monopoly cooperatives has yet to be made, 96 and recommending that antitrust treatment of cooperatives, once they are formed, should parallel that accorded ordinary business corporations. 97 Cooperatives are not so dissimilar from ordinary corporations as to justify special treatment. The primary differences are (1) that cooperatives may be formed with or without capital stock, and (2) that cooperatives generally deal with their members or shareholders, not third parties.98 In other respects, cooperatives are similar to corporations. For example, members or stockholders of a cooperative, like shareholders in a business corporation, ordinarily are not liable for its debts.99 Indeed, cooperatives today typically are organized as corporations.' 00 Courts are not precluded under antitrust laws from treating cooperatives and corporations similarly.' 0 ' The application of Grinnell test for unlawful monopolization, 0 2 which Fairdale Farms court rejected, 0 3 would not burden cooperatives. The Fairdale Farms court was concerned that application of Grinnell test would inhibit growth and operation of cooperatives. 10 4 The Grinnell test, however, apnumber of agricultural cooperatives declined by nearly 25%. FARMER COOPERATION SERVICE, U.S. DEP'T OF AGRICULTURE, STATISTICS OF FARMER COOPERATIVES v (F.C.S. Research Report 39, 1977). 96 1979 REPORT, sufira note 2, at 260. Commentators have criticized exemption as being without economic justification. E.g., 5 H. TOULMIN, supra note 59, § 6.1, at 334 ([E]conomically, there seems to be no sound reason for exemption. . . .'); Noakes, supra note 3, at 407 ('Perhaps one of its most distinctive features is its apparent lack of justification as being directly in public interest.). 97 1979 REPORT, supra note 2, at 253. 98 LEGAL PHASES, supra note 11, at 7, 10. 99 Id. at 8. Cooperatives now obtain borrowed and equity capital from same types of sources as do corporations. See ECONOMICS, STATISTICS, AND COOPERATIVES SERVICE, U.S. DEP'T OF AGRICULTURE, THE CHANGING FINANCIAL STRUCTURE OF FARMER COOPERATIvES 67-72, 125-32 (Farmer Cooperative Research Report 17, 1980). 100 See ECONOMICS, STATISTICS, AND COOPERATIVES SERVICE, U.S. DEP'T OF AGRICULTURE, THE CHANGING FINANCIAL STRUCTURE OF FARMER COOPERATIVES 36-40 (Farmer Cooperative Research Report 17, 1980). 101 See 5 H. TOULMIN, supra note 59, § 6.21, at 367 ('[I]t would be relevant in passing upon reasonableness of restraints by cooperative associations and agricultural interests to consider exactly what is their present relative bargaining That is within Courts [5ic] power. (footnote omitted)); notes 91-97 and accompanying text supra. But see Note, supra note 10, at 367-68 (concluding that a legislative solution is necessary). The Fairdale Farms court also apparently thought that congressional action would be necessary. See 635 F.2d at 1045 n.7. Concededly, a drastic restriction of law's protection in response to changed economic status of agricultural cooperatives should come from Congress; however, this does not justify Second Circuit's decision to broaden that protection. 102 See note 61; notes 54-55 and accompanying text supra. 103 See notes 57-62 and accompanying text supra. 104 See 635 F.2d at 1043, 1045. The district court had addressed this concern: [The cooperatives'] fear may be real, but it does not justify affording cooperatives different treatment than corporations under section 2 of Sherman Act. The legislative history of Capper-Volstead Act as well as cases that discuss it repeatedly demonstrate that Congress intended Act to 1982] CORNELL LAW REVIEW [Vol. 67:396 pears to require an intent to obtain a monopoly, 10 5 and monopolization offense preserves the right to normal growth.' 0 6 Thus, cooperatives would be able to seek additional members as long as they do so without an intent to monopolize. At same time, they would not be able to engage in activities that do not reach status of predatory practices for purpose of obtaining monopoly power.,0 7" @default.
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- W656581202 title "Agricultural Cooperative Antitrust Exemption-Fairdale Farms Inc. v. Yankee Milk Inc." @default.
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