In Texaco Inc.v.Dagher et al.two oil refiners and gas suppliers,Texaco and Shell Oil,entered into a joint venture called Equilon to consolidate their operations in the western U.S.Historically,Texaco and Shell were competitors but for their joint venture they shared expenses and profits equally.The products produced by Equilon were sold under the brand names Texaco and Shell at a mutually agree upon price.Texaco and Shell retailers brought a class action lawsuit against the two companies claiming there was a per se violation of the Sherman Antitrust Act because of the lack of price competition.The court held that:

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The court held that the rule of reason standard should apply because a market analysis is relevant to determine if there is an antitrust violation. The joint venture was not plainly anticompetitive, so a per se violation was not appropriate.