United States v. Kahan & Lessin Co. And Landstrom Distributors, Inc.

Four health food distributors were indicted for conspiring to restrain trade by agreeing to fix prices, terms, and conditions of sale of natural foods, vitamins, and cosmetics, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 . Two of them, Nature’s Best and Tree of Life West, entered pleas of nolo contendere before trial. A jury convicted the remaining two, Kahan & Les-sin Co. (K&L) and Landstrom Distributors, Inc. (Landstrom).

K&L and Landstrom appeal. We AFFIRM.

FACTS

Appellants K&L and Landstrom were the only full-line health food distributors in California before 1974. In 1973-74, Nature’s Best and Tree of Life West entered the health food market and offered special discounts to compete with appellants.

The government established that during four meetings these four distributors agreed to eliminate elements of price competition by not offering distributor-originated discounts at trade shows, by terminating rebates, imposing split case charges and interest charges, limiting discounts, and by agreeing on convention specials.

ISSUES

Appellants here contend that:

DISCUSSION

Appellants contend that the indictment should be dismissed because unauthorized persons…