The court of appeals affirmed a district court judgment. The court held that an agreement between major grocers to share revenues for the duration of a strike was not exempt from scrutiny under the Sherman Act and that more than a “quick look” was required to ascertain the impact of the agreement on competition in the Southern California grocery market.
With each of their respective collective bargaining agreements due to expire, Southern California supermarket chains Albertson’s, Inc., Ralphs Grocery Company, Food 4 Less Food Company, and Safeway, Inc., doing business as Vons, entered into a mutual strike assistance agreement (MSAA). The MSAA provided, among other things, provided that if one party to the agreement was struck by the union, the other grocers (with one exception) would lock out all their union employees within 48 hours.
