The Government does not contend that a per se violation of the Sherman Act is presented by the practices which are involved in this appeal . Accordingly, we are remitted to an appraisal of the market impact of these practices. “well over half of the bicycles sold by Schwinn have been sold direct to the retail dealer by means of Schwinn Plan sales and consignment and agency sales.” The United States did not appeal from the District Court’s rejection of its price-fixing charge. The appellees did not appeal from the findings and order invalidating restraints on resale by distributors who purchase products from Schwinn.
For more than a century, the name Schwinn has represented a leader in the bicycle industry. The company began in 1895 when partners Ignaz Schwinn and Adolph Arnold founded their corporation Arnold, Schwinn & Company. Eventually, the market for adult bicycles grew smaller as schwinn bicycles cars became more affordable. Arnold sold his share of the company to Schwinn, who realized the importance of manufacturing and marketing bicycles for children. With lower prices possible due to advances in manufacturing, the market for children’s bicycles began to grow.
He finalized a purchase of Excelsior Company in 1912, and in 1917 added the Henderson Company to form Excelsior-Henderson. In an atmosphere of general decline elsewhere in the industry, Schwinn’s new motorcycle division thrived, and by 1928 was in third place behind Indian and Harley-Davidson. Founded 125 years ago in 1895 in Chicago, Schwinn is an American cycling icon, building some of the best-loved bicycles of all time, from the collectible balloon tire bikes like the Black Phantom to lightweights like the Schwinn Racer mongoose bmx bike and Collegiate. Schwinn is now a part of Pacific Cycle, based in Madison, and a division of Dorel Sports, which includes other iconic cycling brands, including Mongoose, Roadmaster, Pacific, and Kid Trax. Dorel Industries Inc. has annual sales of $2.6 billion and employs approximately 8,900 people in facilities located in twenty-five countries worldwide. In 1978 production of the fillet-brazed Superior stopped, which marked the end of production for a fine Schwinn frameset whose basic design had been in service since 1938.
Despite the increased tariff, the only structural change in foreign imports during this period was a temporary decline in bicycles imported from Great Britain in favor of lower-priced models from the Netherlands and Germany. Schwinn sells its products primarily to or through 22 wholesale distributors, with sales to the public being made by a large number of retailers. There are about 5,000 to 6,000 retail dealers in the United States which are bicycle specialty shops, generally also providing servicing. About 84% of Schwinn’s sales are through such specialized dealers. Schwinn sells only under the Schwinn label, never under private label, while about 64% of all bicycles are sold under private label. Distributors and retailers handling Schwinn bicycles are not restricted to the handling of that brand.
This adult beach cruiser features a sleek design with a wide, dual-spring seat that provides more comfort than comparable models. This bike also has a unique retro fender over the back wheel to guard against splashing when riding through puddles. Available in a range of colors, you are sure to find the one that best suits you.
The trial court that competition made necessary the challenged program; that it was justified by, and went no further than required by, competitive pressures, and that its net effect is to preserve, and not to damage, competition in the bicycle market. Application of the rule of reason here cannot be confined to intrabrand competition. When we look to the product market as a whole, we cannot conclude that Schwinn’s schwinn bicycles franchise system with respect to products as to which it retains ownership and risk constitutes an unreasonable restraint of trade. This does not, of course, excuse or condone the per se violations which, in substance, consist of the control over the resale of Schwinn’s products after Schwinn has parted with ownership thereof. As a result, Schwinns became increasingly dated in both styling and technology.