Case Details

Year Initiated/Committed


Year Resolved


Settlement Amount

$25,000 (suspended)


Third Districe Court, Salt Lake County, Utah

Docket Number


Lead State


Participating States



Cascade Yarns, Inc.

Case Description

Cascade Yarns, Inc. is a yarn manufacturer and importer that sells yarn to independent retailers for sale to consumers. In the Salt Lake City, Utah market, Wool Cabin, Black Sheep Wool Company and Sherri’s Lace Place all sell Cascade yarn. Wool Cabin and Black Sheep are “traditional’ yarn sellers, most of whose sales consist of knitting products. They typically sell yarn at 100% markup from wholesale. Sherri’s is a craft store and sells yarn incident to its other sales. The state alleged that in the summer of 2004, Wool Cabin and Black Sheep discovered that Sherri’s was selling Cascade yarn at a 20% discount. The state alleged that Sherri’s had never been apprised of any pricing requirement, nor that coupons or discounts were not permitted nor that pricing was supposed to be in accordance with the 100% markup yarn retailers charged. The state further alleged that Cascade was threatened with cancellation of yarn orders from Black Sheep, and Cascade subsequently notified Sherri’s that it would no longer supply it with yarn unless the 100% markup was adhered to. The state alleged a conspiracy between Cascade, Black Sheep and Wool Cabin to pressure Sherri’s to maintain retail prices or lose Cascade yarn. Cascade consented to an injunction, agreed not to interfere with the sale of yarn or other retail products in violation of the Utah Antitrust Act, and agreed to pay a $25,000 fine if it violated the law in the future. The State also executed two :Assurances of Voluntary Compliance” agreements with Black Sheep and Wool Cabin, which required the two companies to cease these practices and agree to future compliance. See Utah v. Cascade Yarns, Inc., Utah v. Black Sheep Wool Company See Utah v. Black Sheep Wool Company, Utah v. Wool Cabin