Justices to Rule on Legality of ARCO Price-Cutting Plan

The Supreme Court today set the stage for an important antitrust ruling, agreeing to decide whether a major oil company’s price-cutting plan illegally harmed independent dealers.

The justices said they will review a ruling that revived a lawsuit for triple damages against Atlantic Richfield Co. by independent gasoline stations in California and Washington state.

The high court will hear arguments in the case in its next term beginning in October, with a ruling likely in 1990.

USA Petroleum Co., an independent oil dealer, accused ARCO of conspiring with ARCO gas station dealers to fix prices illegally to drive the smaller independents out of business.

ARCO said its plan, lowering gasoline prices to attract more customers and discontinuing credit cards to save money, is legitimate.