Continental T v. Inc. v. G.T.E. Sylvania Incorporated and John P. Maguire & Co.

Continental T.V., Inc. (Continental) appeals from a summary judgment in favor of G.T.E. Sylvania Incorporated (Sylvania) and John P. Maguire & Co. (Maguire). Continental challenges Sylvania’s requirement that its dealers sell Sylvania products only from approved locations. The district court found, as a matter of law, that the restriction was not unreasonable. We affirm.

I

FACTUAL BACKGROUND

This appeal involves the legality of a vertical restriction imposed by Sylvania, a manufacturer of television sets, on its retailers. The restriction requires Sylvania retailers to sell Sylvania products from authorized locations only. Sylvania imposed such a location restriction on Continental, a retailer.

Continental was the only approved dealer for Sylvania televisions in San Francisco until Sylvania, dissatisfied with sales in the area, authorized a second dealer for a location within a mile of one of Continental’s San Francisco stores. Shortly thereafter Continental attempted to market Sylvania televisions from an outlet in Sacramento, California. Sylvania had authorized another retailer, Handy Andy, to sell its televisions from a Sacramento location, but refused to allow Continental…