Buyer power litigation in agriculture: Pickett v. Tyson Fresh Meats, Inc

Disproportionate buyer power has been of concern to farmers and ranchers throughout much of the history of American agriculture. A historic political and legal battle over buyer power began in the late 1800s over cattlemen's allegations that the major meat packers (processors) were colluding to fix price and divide up the market for slaughter cattle. Congress enacted the Packers & Stockyards Act, providing that, it shall be unlawful to: engage in or use any unfair, unjustly discriminatory, or deceptive practice or device; engage in any course of business or any act for the purpose or with the effect of manipulating or controlling prices. Numerous courts as well as most economists have generally opined that the rule of reason requires weighing business justification against harm to the market to determine the effect of the practice on aggregate economic efficiency, or the more restrictive test of effect on consumer welfare.