Reference no: EM133812154

Question

Plaintiffs operate lodges and provide lodging referral services in the Big Bear Valley recreational area. For years, the two ski resorts in the area, Snow Summit, Inc., and Bear Mountain, Inc., offered bulk discounts on lift tickets to lodges and tourist businesses, including Plaintiffs. Plaintiffs would then offer "ski packages" of lodging and lift tickets at attractive prices to consumers. Plaintiffs alleged as follows: In 1994, the president of Snow Summit helped form a local association to promote the Big Bear Valley. Plaintiffs were told that unless they joined the association (and paid up to 2.5 percent of their incomes as dues), neither Snow Summit nor Bear Mountain would sell them discount lift tickets nor honor any tickets purchased by them. Association members were also prohibited from selling, trading, or conveying discount lift tickets to Plaintiffs. The Association then adopted rules prohibiting members from belonging to other local referral services in which nonmembers participated and from referring business to nonmembers. Association members also agreed on uniform rates and charges for lodge accommodations, ski packages, and resort services and published advertising materials reflecting these rates. Plaintiffs alleged both price-fixing and group boycott violations on the part of the Association, Snow Summit and Bear Mountain, and certain other members of the Association. The district court dismissed Plaintiffs' complaint, stating: "This is not an antitrust case, period." Plaintiffs have appealed. How should the appellate court rule, and why?