Case Details

Year Initiated/Committed

1988

Year Resolved

1988

Settlement Amount

$97,000 ($47,000 costs, $50,000 civil penalty)

Court

First District Court for Cache County, Utah

Docket Number

880026602

Lead State

UT

Participating States

UT

Defendant(s)

Hitachi Sales Corp. of America; Consumer Technologies, Inc.; Kimball Electronics, Inc.

Case Description

State alleged that beginning in December 1985 Hitachi Corp. and Kimball Electronics conspired to unreasonably restrict trade and commerce in violation of the Utah Antitrsut Act. According to the state, the conspiracy consisted of a continuing agreement, understanding and coordinated action among defendants to raise, fix and maintain the retail price of Hitachi consumer electronic products. This conspiracy was actively maintained via telephone conversations and meetings. Specifically, the conspiracy alleged by the state consisted of coordinated actions between Linn Dunn, the Hitachi district sales manager who supplied defendant Consumer Technologies with Hitachi products, the Hitachi area sales manager who supervised Dunn and sales manager for Kimball Electronics. In November 1986, an agent of Consumer Technologies phoned a competing retailer in Logan Utah and demanded that the retailer raise prices on Hitachi products. The next day, an agent of Consumer Technologies went in person to the competing retailer and demanded that prices be raise on Hitachi productes. When the retailer refused, Kimball in conspiracy with other defendants refused to fill orders for Hitachi products. When a second retalier in Logan refused to maintain prices as demanded by defendants, that retailer also was deprived of the opportunity to order and market Hitachi products. Without admitting any fault, Hitachi Corp. agreed to appoint another retail dealer or compamny buyer in the Logan Utah area, and was enjoined from arbitrarily withdrawing products from retail dealers, and paid penalties of $97,000.