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The case that I found to write my report on was California versus American Stores Co In a case argued January 16 1990 before the Supreme Court of the United States of America a decision was ruled on April 30 1990 American Stores Co tried to gain an advantage in the state marketplace by buying up remaining stock of the number one chain the state of California Shortly after respondent American Stores Co the fourth largest supermarket chain in California acquired all of the outstanding stock of the largest chain the State filed suit in the District Court alleging inter alia that the merger constituted an anticompetitive acquisition violative of 7 of the Clayton Act and would harm consumers throughout the State It was decided by the court to grant the State a preliminary injunction requiring American to operate the acquired stores separately from the ones already in business until the outcome of the suit had been found Although agreeing that the State had proved a likelihood of success on the merits and the probability of irreparable harm the Court of Appeals decided against the injunction on the ground that the relief granted exceeded the District Courts authority to rule in such a manner according to 16 of the Act to order injunctive relief The court relied on an previous decision in which the court had concluded on the basis of its reading of excerpts from subcommittee hearings that 16s draftsmen did not intend to authorize the remedies of dissolution or divestiture in private litigants actions Thus held the court the indirect divestiture effected by the preliminary injunction was impermissible The following was obtained directly from the website with url httpwwwstolafedupeoplebeckerantitrustsummaries495us271html Divestiture is a form of injunctive relief authorized by 16 Pp 278-296 a The plain text of 16 -- which entitles any person to have injunctive relief against threatened loss or damage
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