Amendment Re-Aligns Kansas' State Antitrust Law With Sherman Act Standards—Almost

Nearly a year ago the Kansas Supreme Court issued a ruling that boldly separated Kansas, and its state antitrust law, from prevailing federal antitrust precedent in matters of resale price agreements. However, in April 2013, the legislature amended the Kansas antitrust law, so that it now applies a “rule of reasonableness” to resale price agreements.

In O'Brien v. Leegin Creative Leather Products, Inc., 277 P.3d 1062 (May 4, 2012), the Kansas Supreme Court applied the state's antitrust statute (which states that an "arrangement, contract, agreement, trust or combination" that is "designed to advance, reduce or control price" or "tends to" have that effect, is sufficient to establish an antitrust violation) must be read literally, and that the "rule of reason of federal jurisprudence does not apply". An initial attempt to reverse the decision by legislation failed.