{ "attribution": { "source": "legal.exploreworldai.com", "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca7-24-2111-2025-08-15", "cite_as": "NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca7-24-2111-2025-08-15)", "license": "https://legal.exploreworldai.com/revision", "version": "legal-2026-10-13", "fingerprint": "ewai:us:97516d", "proof": "sha256:23fcbf9bde5792403b468f6ed89e2cf4c14b2622e34bfe3130107ac54294c25a", "jurisdiction": "us", "lang": "en", "publisher": "NovaCopilot by ExploreWorld Legal", "terms": "https://legal.exploreworldai.com/om" }, "brand_source": "Source: NovaCopilot", "item": { "schema_version": "1.0.0", "id": "us:ca7-24-2111-2025-08-15", "jurisdiction": "us", "lang": "en", "brand_source": "Source: NovaCopilot", "brand": { "product": "NovaCopilot", "platform": "ExploreWorldAI", "infrastructure": "ExploreWorld Legal", "infrastructure_url": "legal.exploreworldai.com", "legal_entity": "Valkiv Ventures AB", "permanent_url": "https://legal.exploreworldai.com/novacopilot", "source": "Source: NovaCopilot", "powered_by": "Powered by NovaCopilot", "license": "https://legal.exploreworldai.com/licensvillkor" }, "sections": [ { "title": "In the", "paragraphs": [] }, { "title": "United States Court of Appeals", "paragraphs": [] }, { "title": "For the Seventh Circuit", "paragraphs": [ "para_4" ] }, { "title": "No. 24-2111", "paragraphs": [ "para_6" ] }, { "title": "SALES PRACTICES AND ANTITRUST LITIGATION", "paragraphs": [ "para_8" ] }, { "title": "Plaintiffs-Appellants", "paragraphs": [ "para_10" ] }, { "title": "HARLEY-DAVIDSON MOTOR COMPANY GROUP, LLC and HAR-", "paragraphs": [ "para_12", "para_13", "para_14" ] }, { "title": "Appeal from the United States District Court for the", "paragraphs": [ "para_16", "para_17", "para_18" ] }, { "title": "ARGUED DECEMBER 10, 2024 — DECIDED AUGUST 15, 2025", "paragraphs": [ "para_20", "para_21" ] }, { "title": "KIRSCH, Circuit Judge. Harley-Davidson offers customers a", "paragraphs": [ "para_23" ] }, { "title": "Among other terms and conditions, Harley-Davidson limits", "paragraphs": [ "para_25" ] }, { "title": "2 No. 24-2111", "paragraphs": [ "para_27", "para_28", "para_29", "para_30" ] }, { "title": "Harley-Davidson parts instead. They then sued, claiming the", "paragraphs": [ "para_32", "para_33", "para_34", "para_35", "para_36", "para_37" ] }, { "title": "The Warranty Act imposes both disclosure and content", "paragraphs": [ "para_39", "para_40", "para_41", "para_42", "para_43" ] }, { "title": "Warranty Act’s anti-tying provision. Nor does the complaint", "paragraphs": [ "para_45", "para_46", "para_47", "para_48", "para_49", "para_50" ] }, { "title": "Heymer’s antitrust claims likewise fail. The complaint ac-", "paragraphs": [ "para_52", "para_53", "para_54" ] }, { "title": "But Heymer cannot make out a tying or attempted monopoli-", "paragraphs": [ "para_56", "para_57" ] }, { "title": "No. 24-2111 3", "paragraphs": [ "para_59", "para_60", "para_61", "para_62", "para_63" ] }, { "title": "I", "paragraphs": [] }, { "title": "This appeal arises out of a motion to dismiss, so we accept", "paragraphs": [ "para_66", "para_67" ] }, { "title": "2018). “That does not mean, however, that we vouch for their", "paragraphs": [ "para_69", "para_70", "para_71" ] }, { "title": "Council of Carpenters Welfare Fund v. Caremark, Inc., 474 F.3d", "paragraphs": [] }, { "title": "463, 466 (7th Cir. 2007). Although the plaintiffs did not attach", "paragraphs": [ "para_74", "para_75", "para_76", "para_77", "para_78", "para_79" ] }, { "title": "A", "paragraphs": [] }, { "title": "Harley-Davidson Motor Company Group, LLC and", "paragraphs": [] }, { "title": "Harley-Davidson Motor Company, Inc. (collectively, Harley-", "paragraphs": [] }, { "title": "Davidson) manufacture and sell motorcycles to consumers", "paragraphs": [ "para_84", "para_85", "para_86", "para_87", "para_88" ] }, { "title": "4 No. 24-2111", "paragraphs": [] }, { "title": "American brand and appeals to consumers that seek to", "paragraphs": [ "para_91", "para_92", "para_93", "para_94", "para_95", "para_96", "para_97" ] }, { "title": "Indian Motorcycle Inc., is small by comparison—no more", "paragraphs": [ "para_99" ] }, { "title": "Apart from motorcycles, Harley-Davidson also", "paragraphs": [ "para_101" ] }, { "title": "Because Harley-Davidson owners are willing to keep their", "paragraphs": [ "para_103", "para_104", "para_105", "para_106", "para_107" ] }, { "title": "Harley-Davidson motorcycles, giving customers a wide", "paragraphs": [ "para_109", "para_110" ] }, { "title": "In addition to selling parts, Harley-Davidson also supplies", "paragraphs": [ "para_112" ] }, { "title": "Under the terms of the limited warranty, an authorized", "paragraphs": [] }, { "title": "Harley-Davidson dealer will repair or replace any defective", "paragraphs": [ "para_115" ] }, { "title": "24 months. However, the limited warranty comes with certain", "paragraphs": [ "para_117", "para_118", "para_119", "para_120" ] }, { "title": "No. 24-2111 5", "paragraphs": [] }, { "title": "Although the limited warranty is included in the owner’s", "paragraphs": [ "para_123", "para_124", "para_125", "para_126", "para_127" ] }, { "title": "Harley-Davidson explains that the owner must follow the", "paragraphs": [ "para_129", "para_130", "para_131" ] }, { "title": "Use only Harley-Davidson approved parts and", "paragraphs": [ "para_133", "para_134", "para_135" ] }, { "title": "Use of aftermarket performance parts may void", "paragraphs": [ "para_137", "para_138", "para_139" ] }, { "title": "Genuine Harley-Davidson parts are engineered", "paragraphs": [ "para_141", "para_142" ] }, { "title": "Davidson dealer uses only genuine Harley-", "paragraphs": [] }, { "title": "Davidson replacement parts and accessories to", "paragraphs": [ "para_145", "para_146" ] }, { "title": "Davidson parts and accessories are appropriate", "paragraphs": [ "para_148", "para_149" ] }, { "title": "Installing off-road or competition parts to en-", "paragraphs": [ "para_151" ] }, { "title": "6 No. 24-2111", "paragraphs": [ "para_153", "para_154", "para_155", "para_156" ] }, { "title": "And in the section of the owner’s manual that outlines the", "paragraphs": [ "para_158", "para_159", "para_160" ] }, { "title": "B", "paragraphs": [] }, { "title": "In 2022, the Federal Trade Commission issued a complaint", "paragraphs": [ "para_163", "para_164" ] }, { "title": "Moss Warranty Act (the Warranty Act), 15 U.S.C. § 2301 et", "paragraphs": [ "para_166", "para_167", "para_168", "para_169", "para_170", "para_171" ] }, { "title": "Around the same time, Edward Heymer and several other", "paragraphs": [ "para_173" ] }, { "title": "The United States Judicial Panel on Multidistrict Litigation", "paragraphs": [ "para_175", "para_176", "para_177", "para_178", "para_179", "para_180", "para_181", "para_182" ] }, { "title": "No. 24-2111 7", "paragraphs": [] }, { "title": "Harley-Davidson’s warranty practices violate the Warranty", "paragraphs": [] }, { "title": "Act and various state laws. He seeks to represent a class of", "paragraphs": [ "para_186" ] }, { "title": "Harley-Davidson moved under Federal Rule of Civil Pro-", "paragraphs": [ "para_188", "para_189", "para_190", "para_191" ] }, { "title": "Harley-Davidson parts or otherwise state a viable claim un-", "paragraphs": [ "para_193", "para_194", "para_195", "para_196", "para_197", "para_198", "para_199", "para_200" ] }, { "title": "II", "paragraphs": [] }, { "title": "Before turning to the merits, we must first assure ourselves", "paragraphs": [ "para_203" ] }, { "title": "Shanda Yuanfeng Equity Inv. P’ship v. Wan, 59 F.4th 262, 268", "paragraphs": [] }, { "title": "(7th Cir. 2023). We agree with the parties that the district court", "paragraphs": [ "para_206" ] }, { "title": "Class Action Fairness Act (CAFA), 28 U.S.C. § 1332(d). There", "paragraphs": [ "para_208", "para_209", "para_210", "para_211", "para_212", "para_213", "para_214" ] }, { "title": "8 No. 24-2111", "paragraphs": [ "para_216", "para_217" ] }, { "title": "Stores, L.P., 6 F.4th 726, 731 (7th Cir. 2021). Relevant here, it", "paragraphs": [ "para_219", "para_220", "para_221", "para_222" ] }, { "title": "The parties suggest that the Warranty Act’s jurisdictional", "paragraphs": [ "para_224", "para_225", "para_226", "para_227" ] }, { "title": "The Third and Ninth Circuits have held that CAFA does not", "paragraphs": [ "para_229" ] }, { "title": "CAFA would effectively repeal by implication the Warranty", "paragraphs": [ "para_231" ] }, { "title": "966 F.3d 1027, 1034–35 (9th Cir. 2020); Rowland v. Bissell", "paragraphs": [] }, { "title": "Homecare, Inc., 73 F.4th 177, 183–85 (3d Cir. 2023). In an un-", "paragraphs": [ "para_234", "para_235", "para_236", "para_237", "para_238", "para_239", "para_240", "para_241" ] }, { "title": "Sales Pracs. & Prods. Liab. Litig., 735 F. Supp. 3d 1036, 1043–45", "paragraphs": [ "para_243" ] }, { "title": "We have yet to resolve the jurisdictional interplay between", "paragraphs": [ "para_245", "para_246" ] }, { "title": "No. 24-2111 9", "paragraphs": [ "para_248", "para_249" ] }, { "title": "Warranty Act claims. 28 U.S.C. § 1367(a); Voelker v. Porsche", "paragraphs": [] }, { "title": "Cars N. Am., Inc., 353 F.3d 516, 522 (7th Cir. 2003). And once", "paragraphs": [ "para_252", "para_253", "para_254", "para_255", "para_256", "para_257", "para_258", "para_259", "para_260" ] }, { "title": "III", "paragraphs": [] }, { "title": "Prior to the passage of the Warranty Act, product warran-", "paragraphs": [ "para_263", "para_264", "para_265" ] }, { "title": "660 F.2d 311, 314 (7th Cir. 1981). To remedy this, the Warranty", "paragraphs": [] }, { "title": "Act imposed certain disclosure requirements and minimum", "paragraphs": [ "para_268" ] }, { "title": "These provisions “improve the adequacy of information", "paragraphs": [ "para_270", "para_271", "para_272", "para_273" ] }, { "title": "A", "paragraphs": [] }, { "title": "First, § 2302(c) precludes warrantors from conditioning a", "paragraphs": [ "para_276", "para_277" ] }, { "title": "10 No. 24-2111", "paragraphs": [ "para_279", "para_280", "para_281", "para_282", "para_283", "para_284", "para_285" ] }, { "title": "Heymer alleges that certain statements in Harley-", "paragraphs": [] }, { "title": "Davidson’s owner’s manual violate the Warranty Act’s anti-", "paragraphs": [ "para_288", "para_289", "para_290", "para_291", "para_292", "para_293" ] }, { "title": "Harley-Davidson replacement parts and accessories to keep", "paragraphs": [ "para_295", "para_296", "para_297", "para_298" ] }, { "title": "1 The FTC’s regulatory guidance is only “advisory in nature” and", "paragraphs": [ "para_300", "para_301" ] }, { "title": "Reg. 36111, 36112 (July 13, 1977). But where, like here, an agency interpre-", "paragraphs": [ "para_303", "para_304" ] }, { "title": "603 U.S. 369, 385–86 (2024); see also Miller v. Herman, 600 F.3d 726, 733–34", "paragraphs": [] }, { "title": "(7th Cir. 2010) (giving Skidmore deference to the FTC’s interpretations of", "paragraphs": [ "para_307", "para_308" ] }, { "title": "No. 24-2111 11", "paragraphs": [] }, { "title": "These statements are neither in the limited warranty nor", "paragraphs": [ "para_311", "para_312", "para_313", "para_314", "para_315", "para_316", "para_317", "para_318", "para_319", "para_320", "para_321", "para_322" ] }, { "title": "It is true that the limited warranty says customers must", "paragraphs": [ "para_324", "para_325", "para_326", "para_327", "para_328", "para_329", "para_330", "para_331", "para_332", "para_333", "para_334" ] }, { "title": "We are cognizant of the fact that the FTC issued a com-", "paragraphs": [ "para_336", "para_337", "para_338", "para_339", "para_340" ] }, { "title": "12 No. 24-2111", "paragraphs": [] }, { "title": "FTC v. Standard Oil Co. of Cal., 449 U.S. 232, 241 (1980). That is", "paragraphs": [ "para_343", "para_344", "para_345" ] }, { "title": "In the alternative, Heymer contends that even if these", "paragraphs": [ "para_347", "para_348", "para_349", "para_350", "para_351", "para_352", "para_353" ] }, { "title": "To support an implied tying theory of liability, Heymer", "paragraphs": [ "para_355", "para_356" ] }, { "title": "In addition, warranty language that implies to a", "paragraphs": [ "para_358", "para_359", "para_360", "para_361" ] }, { "title": "For example, a provision in the warranty such", "paragraphs": [ "para_363", "para_364", "para_365", "para_366", "para_367", "para_368", "para_369", "para_370", "para_371", "para_372" ] }, { "title": "No. 24-2111 13", "paragraphs": [ "para_374" ] }, { "title": "We agree with Heymer that the statements in the owner’s", "paragraphs": [ "para_376", "para_377", "para_378" ] }, { "title": "Davidson dealer uses only genuine Harley-Davidson", "paragraphs": [ "para_380" ] }, { "title": "Davidson motorcycle and its limited warranty intact” both", "paragraphs": [ "para_382" ] }, { "title": "As was the case with Heymer’s express tying theory, how-", "paragraphs": [ "para_384", "para_385", "para_386", "para_387" ] }, { "title": "Paper & Copier Co., 732 F.3d 755, 762 (7th Cir. 2013), and must", "paragraphs": [ "para_389", "para_390", "para_391" ] }, { "title": "The limited warranty clearly disclaimed any ties (express", "paragraphs": [ "para_393" ] }, { "title": "Davidson parts could affect warranty coverage. The warranty", "paragraphs": [ "para_395", "para_396", "para_397", "para_398", "para_399", "para_400" ] }, { "title": "But the details were in the limited warranty itself, and those", "paragraphs": [ "para_402", "para_403", "para_404" ] }, { "title": "14 No. 24-2111", "paragraphs": [ "para_406", "para_407", "para_408", "para_409", "para_410", "para_411" ] }, { "title": "Heymer is entitled to all reasonable inferences. But the in-", "paragraphs": [ "para_413", "para_414" ] }, { "title": "Corp. v. Fed. Ins. Co., 284 F.3d 799, 804 (7th Cir. 2002). Consid-", "paragraphs": [ "para_416" ] }, { "title": "Harley-Davidson’s limited warranty implied that consumers", "paragraphs": [ "para_418", "para_419" ] }, { "title": "B", "paragraphs": [] }, { "title": "Heymer’s next claim arises under § 2302(a). This provision", "paragraphs": [ "para_422", "para_423", "para_424", "para_425", "para_426", "para_427", "para_428", "para_429" ] }, { "title": "However, Heymer never articulates what warranty terms", "paragraphs": [] }, { "title": "Harley-Davidson purportedly applies that are not fully and", "paragraphs": [ "para_432", "para_433", "para_434", "para_435" ] }, { "title": "No. 24-2111 15", "paragraphs": [ "para_437" ] }, { "title": "But detail comes at a cost. So long as the warranty clearly de-", "paragraphs": [ "para_439", "para_440", "para_441", "para_442", "para_443", "para_444", "para_445", "para_446", "para_447", "para_448", "para_449", "para_450", "para_451" ] }, { "title": "Heymer only points to two other statements he says are", "paragraphs": [ "para_453" ] }, { "title": "Harley-Davidson approved parts and service procedures", "paragraphs": [ "para_455", "para_456", "para_457", "para_458", "para_459", "para_460", "para_461", "para_462", "para_463", "para_464" ] }, { "title": "The FTC’s own regulations instruct warrantors to provide", "paragraphs": [ "para_466", "para_467", "para_468" ] }, { "title": "16 No. 24-2111", "paragraphs": [ "para_470", "para_471", "para_472", "para_473", "para_474", "para_475", "para_476" ] }, { "title": "C", "paragraphs": [] }, { "title": "Heymer’s final Warranty Act claim is brought under", "paragraphs": [ "para_479", "para_480", "para_481" ] }, { "title": "C.F.R. § 702.3(b). There are multiple ways to satisfy this pre-", "paragraphs": [ "para_483", "para_484", "para_485", "para_486", "para_487" ] }, { "title": "In his complaint, Heymer alleges that Harley-Davidson", "paragraphs": [ "para_489", "para_490" ] }, { "title": "Harley-Davidson’s website or that the company fails to", "paragraphs": [ "para_492", "para_493", "para_494", "para_495", "para_496", "para_497", "para_498", "para_499" ] }, { "title": "No. 24-2111 17", "paragraphs": [] }, { "title": "Cielak v. Nicolet Union High Sch. Dist., 112 F.4th 472, 475 (7th", "paragraphs": [ "para_502" ] }, { "title": "For the foregoing reasons, we affirm the dismissal of Hey-", "paragraphs": [ "para_504" ] }, { "title": "IV", "paragraphs": [] }, { "title": "Next, we turn to Heymer’s state law antitrust claims. He", "paragraphs": [ "para_507", "para_508", "para_509" ] }, { "title": "15 U.S.C. § 1 et seq., the parties agree that the relevant state", "paragraphs": [ "para_511", "para_512" ] }, { "title": "Accordingly, we assume without deciding that the federal", "paragraphs": [ "para_514" ] }, { "title": "A", "paragraphs": [] }, { "title": "Heymer first claims that the statements in the owner’s", "paragraphs": [ "para_517", "para_518" ] }, { "title": "A tie is anticompetitive when the seller exploits “its control", "paragraphs": [ "para_520", "para_521", "para_522" ] }, { "title": "No. 2 v. Hyde, 466 U.S. 2, 12 (1984). To state a claim, a plaintiff", "paragraphs": [ "para_524", "para_525", "para_526", "para_527", "para_528", "para_529" ] }, { "title": "18 No. 24-2111", "paragraphs": [ "para_531", "para_532" ] }, { "title": "Here, we do not need to determine whether a tying", "paragraphs": [ "para_534", "para_535", "para_536", "para_537" ] }, { "title": "That is not a sufficient market share to plausibly infer", "paragraphs": [ "para_539" ] }, { "title": "Acct. Corp., 776 F.2d 665, 672 (7th Cir. 1985) (citing Jefferson", "paragraphs": [] }, { "title": "Par., 466 U.S. at 26–31 & n.43). Heymer does not argue", "paragraphs": [ "para_542", "para_543", "para_544", "para_545", "para_546", "para_547" ] }, { "title": "A product market is generally “composed of products that", "paragraphs": [ "para_549", "para_550" ] }, { "title": "Co., 351 U.S. 377, 404 (1956). “However, within this broad", "paragraphs": [ "para_552", "para_553" ] }, { "title": "Brown Shoe Co. v. United States, 370 U.S. 294, 325 (1962). There-", "paragraphs": [ "para_555", "para_556", "para_557", "para_558", "para_559", "para_560", "para_561" ] }, { "title": "No. 24-2111 19", "paragraphs": [] }, { "title": "These practical indicia are largely absent from the", "paragraphs": [ "para_564", "para_565", "para_566", "para_567", "para_568", "para_569" ] }, { "title": "American-made motorcycles are effectively a separate", "paragraphs": [ "para_571", "para_572", "para_573", "para_574", "para_575" ] }, { "title": "According to the complaint, some consumers will only", "paragraphs": [ "para_577", "para_578", "para_579", "para_580", "para_581" ] }, { "title": "To start with, the allegations in the complaint are more", "paragraphs": [ "para_583", "para_584" ] }, { "title": "Harley-Davidson motorcycles are more expensive than other", "paragraphs": [ "para_586", "para_587", "para_588", "para_589", "para_590", "para_591", "para_592" ] }, { "title": "Harley-Davidson. And to the extent riders use their", "paragraphs": [ "para_594" ] }, { "title": "20 No. 24-2111", "paragraphs": [ "para_596", "para_597", "para_598", "para_599" ] }, { "title": "Consumer preference for a particular brand is not", "paragraphs": [ "para_601", "para_602" ] }, { "title": "E. Areeda & Herbert Hovenkamp, Antitrust Law: An Analysis", "paragraphs": [ "para_604" ] }, { "title": "2025) (explaining the presumption against single-brand", "paragraphs": [ "para_606" ] }, { "title": "(dismissal on the pleadings appropriate to resolve “failed", "paragraphs": [ "para_608", "para_609", "para_610", "para_611", "para_612", "para_613" ] }, { "title": "188 F.3d 11, 23 (1st Cir. 1999); see also duPont, 351 U.S. at 392–", "paragraphs": [] }, { "title": "93; Elliott v. United Ctr., 126 F.3d 1003, 1005 (7th Cir. 1997);", "paragraphs": [ "para_616" ] }, { "title": "1991) (collecting cases). Absent something more concrete than", "paragraphs": [ "para_618", "para_619" ] }, { "title": "Even setting aside the brand-specific allegations in the", "paragraphs": [ "para_621", "para_622", "para_623", "para_624", "para_625", "para_626" ] }, { "title": "No. 24-2111 21", "paragraphs": [ "para_628", "para_629", "para_630", "para_631", "para_632" ] }, { "title": "Davidson’s vigorous marketing efforts as indicative of", "paragraphs": [ "para_634" ] }, { "title": "We are aware of only one precedential decision squarely", "paragraphs": [ "para_636", "para_637" ] }, { "title": "(11th Cir. 2015), the Eleventh Circuit found sufficient evidence", "paragraphs": [ "para_639", "para_640", "para_641", "para_642", "para_643", "para_644", "para_645", "para_646", "para_647", "para_648" ] }, { "title": "Although Heymer also claims that some riders will only", "paragraphs": [ "para_650", "para_651", "para_652", "para_653", "para_654", "para_655", "para_656", "para_657" ] }, { "title": "Harley-Davidson customer would only purchase American-", "paragraphs": [] }, { "title": "22 No. 24-2111", "paragraphs": [ "para_660", "para_661", "para_662", "para_663" ] }, { "title": "American-made motorcycles are also more expensive than", "paragraphs": [ "para_665" ] }, { "title": "B", "paragraphs": [] }, { "title": "Next, Heymer claims that Harley-Davidson impermissi-", "paragraphs": [ "para_668", "para_669", "para_670", "para_671", "para_672", "para_673", "para_674", "para_675" ] }, { "title": "As we discussed in Part IV.A, Harley-Davidson does not", "paragraphs": [ "para_677", "para_678", "para_679", "para_680", "para_681" ] }, { "title": "F.4th 946, 998 (9th Cir. 2023) (“Where, like here, the plaintiff", "paragraphs": [ "para_683", "para_684", "para_685" ] }, { "title": "Further, Heymer has not shown a dangerous probability", "paragraphs": [ "para_687", "para_688", "para_689" ] }, { "title": "No. 24-2111 23", "paragraphs": [ "para_691", "para_692", "para_693" ] }, { "title": "The aftermarket is as large as it is, Heymer says, because", "paragraphs": [ "para_695", "para_696" ] }, { "title": "Harley-Davidson motorcycles, the limited warranty lasts no", "paragraphs": [ "para_698" ] }, { "title": "And even then, it only forecloses competition for parts that", "paragraphs": [ "para_700", "para_701", "para_702", "para_703", "para_704", "para_705" ] }, { "title": "C", "paragraphs": [] }, { "title": "Finally, Heymer raises a Kodak-style lock-in claim. He says", "paragraphs": [ "para_708", "para_709", "para_710", "para_711", "para_712", "para_713" ] }, { "title": "The Supreme Court addressed the issue of aftermarket", "paragraphs": [ "para_715" ] }, { "title": "504 U.S. 451 (1992). Kodak sold copiers that could be serviced", "paragraphs": [ "para_717", "para_718", "para_719", "para_720" ] }, { "title": "This change in policy pushed many of them out of business", "paragraphs": [] }, { "title": "24 No. 24-2111", "paragraphs": [ "para_723", "para_724", "para_725", "para_726", "para_727" ] }, { "title": "66. The Court rejected Kodak’s argument, reasoning that the", "paragraphs": [ "para_729", "para_730", "para_731", "para_732", "para_733", "para_734" ] }, { "title": "Here, Heymer does not allege that Harley-Davidson", "paragraphs": [ "para_736", "para_737", "para_738", "para_739", "para_740", "para_741", "para_742", "para_743", "para_744", "para_745", "para_746" ] }, { "title": "Inc., 73 F.3d 756 (7th Cir. 1996):", "paragraphs": [] }, { "title": "The Court did not doubt in Kodak that if spare", "paragraphs": [ "para_749", "para_750", "para_751", "para_752", "para_753" ] }, { "title": "No. 24-2111 25", "paragraphs": [ "para_755", "para_756", "para_757", "para_758" ] }, { "title": "Id. at 763. Unlike the customers in Kodak, then, Heymer could", "paragraphs": [ "para_760", "para_761" ] }, { "title": "F.3d 430, 440 (3d Cir. 1997); Wampler v. Sw. Bell Tel. Co., 597", "paragraphs": [ "para_763", "para_764" ] }, { "title": "Before concluding, we also note that the switching costs", "paragraphs": [ "para_766", "para_767", "para_768" ] }, { "title": "Heymer wants to avoid using Harley-Davidson parts, the", "paragraphs": [ "para_770", "para_771" ] }, { "title": "We do not think these are the kind of switching costs the", "paragraphs": [ "para_773" ] }, { "title": "For the foregoing reasons, Heymer has failed to plausibly", "paragraphs": [ "para_775" ] }, { "title": "V", "paragraphs": [] }, { "title": "Heymer raises several other state law claims involving", "paragraphs": [ "para_778", "para_779" ] }, { "title": "Heymer makes no argument on appeal that they should", "paragraphs": [] }, { "title": "26 No. 24-2111", "paragraphs": [ "para_782", "para_783", "para_784" ] }, { "title": "AFFIRMED", "paragraphs": [] }, { "title": "2 In a different section of his brief, Heymer does suggest that one of", "paragraphs": [ "para_787", "para_788", "para_789", "para_790" ] }, { "title": "No. 24-2111 27", "paragraphs": [] }, { "title": "LEE, Circuit Judge, dissenting in part and concurring in", "paragraphs": [ "para_793", "para_794", "para_795", "para_796", "para_797", "para_798", "para_799", "para_800", "para_801", "para_802" ] }, { "title": "Plaintiffs plausibly alleged that the nondisclosures affected", "paragraphs": [ "para_804" ] }, { "title": "Second, I agree that the district court’s dismissal of Plain-", "paragraphs": [ "para_806", "para_807", "para_808" ] }, { "title": "Third, I agree that Plaintiffs have failed to state a claim that", "paragraphs": [] }, { "title": "Harley-Davidson violated state antitrust laws by attempting", "paragraphs": [ "para_811", "para_812", "para_813", "para_814", "para_815", "para_816" ] }, { "title": "Lastly, I agree that Plaintiffs cannot make out a “Kodak-", "paragraphs": [ "para_818", "para_819", "para_820" ] }, { "title": "28 No. 24-2111", "paragraphs": [] }, { "title": "I part with the majority opinion, however, in two signifi-", "paragraphs": [ "para_823", "para_824", "para_825", "para_826" ] }, { "title": "Harley-Davidson aftermarket parts (for simplicity’s sake, I", "paragraphs": [ "para_828", "para_829", "para_830", "para_831", "para_832", "para_833", "para_834", "para_835", "para_836" ] }, { "title": "Second, I believe that the complaint plausibly alleges an", "paragraphs": [ "para_838", "para_839", "para_840", "para_841", "para_842" ] }, { "title": "In rejecting these claims, the majority inverts the long-", "paragraphs": [ "para_844", "para_845", "para_846", "para_847", "para_848" ] }, { "title": "And it chooses to reject Plaintiffs’ plausible definition of the", "paragraphs": [ "para_850", "para_851" ] }, { "title": "No. 24-2111 29", "paragraphs": [ "para_853", "para_854" ] }, { "title": "I", "paragraphs": [] }, { "title": "First, Plaintiffs have plausibly alleged a claim that Harley-", "paragraphs": [] }, { "title": "Davidson violated the Warranty Act’s anti-tying prohibition", "paragraphs": [ "para_858", "para_859", "para_860", "para_861", "para_862" ] }, { "title": "Here, Plaintiffs allege that Harley-Davidson’s 2021", "paragraphs": [] }, { "title": "Owner’s Manual, which the complaint incorporates by refer-", "paragraphs": [ "para_865", "para_866", "para_867", "para_868", "para_869" ] }, { "title": "As a condition of coverage, however, the warranty re-", "paragraphs": [ "para_871" ] }, { "title": "Manual. For example, in the very beginning, the warranty", "paragraphs": [ "para_873", "para_874", "para_875", "para_876", "para_877", "para_878" ] }, { "title": "This then leads us to the Owner’s Manual, which includes", "paragraphs": [ "para_880", "para_881" ] }, { "title": "Maintenance” and “Keeping It All Harley-Davidson.” The", "paragraphs": [] }, { "title": "30 No. 24-2111", "paragraphs": [ "para_884" ] }, { "title": "Davidson approved parts and accessories that have been", "paragraphs": [ "para_886", "para_887", "para_888", "para_889", "para_890", "para_891", "para_892", "para_893", "para_894", "para_895" ] }, { "title": "What is more, according to Plaintiffs, this is what hap-", "paragraphs": [ "para_897", "para_898", "para_899", "para_900", "para_901", "para_902", "para_903" ] }, { "title": "Rather than assuming the truth of these allegations and", "paragraphs": [ "para_905", "para_906", "para_907", "para_908", "para_909" ] }, { "title": "Slip Op. at 10. Emphasizing the word “may,” the majority", "paragraphs": [ "para_911", "para_912", "para_913" ] }, { "title": "No. 24-2111 31", "paragraphs": [] }, { "title": "But this language cannot support the weight the majority", "paragraphs": [ "para_916", "para_917", "para_918", "para_919", "para_920", "para_921" ] }, { "title": "Harley-Davidson did do this. These statements are not mutu-", "paragraphs": [ "para_923", "para_924" ] }, { "title": "Plaintiffs have sufficiently alleged an express tie to satisfy", "paragraphs": [ "para_926" ] }, { "title": "In addition, Plaintiffs have adequately alleged, in the al-", "paragraphs": [ "para_928", "para_929", "para_930", "para_931", "para_932", "para_933" ] }, { "title": "13. But, then, it pronounces that “the limited warranty clearly", "paragraphs": [ "para_935", "para_936" ] }, { "title": "True, the warranty states that it does not cover “[d]efects", "paragraphs": [ "para_938" ] }, { "title": "Harley-Davidson’s factory specifications or caused by", "paragraphs": [ "para_940", "para_941", "para_942", "para_943" ] }, { "title": "First, note that this statement excludes from warranty cov-", "paragraphs": [ "para_945" ] }, { "title": "32 No. 24-2111", "paragraphs": [ "para_947", "para_948" ] }, { "title": "Instead, their theory is that, under the limited warranty, any", "paragraphs": [ "para_950", "para_951", "para_952" ] }, { "title": "Second, as noted previously, the warranty states from the", "paragraphs": [ "para_954" ] }, { "title": "Owner’s Manual is “a condition of this warranty.” And it does", "paragraphs": [ "para_956", "para_957", "para_958", "para_959", "para_960", "para_961", "para_962", "para_963" ] }, { "title": "Finally, the majority is correct to say that “the interpreta-", "paragraphs": [ "para_965" ] }, { "title": "Op. at 14. But, when we consider all of the relevant statements", "paragraphs": [ "para_967", "para_968", "para_969", "para_970", "para_971", "para_972", "para_973", "para_974", "para_975", "para_976", "para_977" ] }, { "title": "No. 24-2111 33", "paragraphs": [ "para_979", "para_980" ] }, { "title": "Newman v. Metro. Life Ins. Co., 885 F.3d 992, 1000 (7th Cir. 2018)", "paragraphs": [] }, { "title": "(denying motion to dismiss on contract claim and allowing", "paragraphs": [ "para_983", "para_984" ] }, { "title": "After the facts come out, it is quite possible that Plaintiffs", "paragraphs": [ "para_986", "para_987", "para_988", "para_989" ] }, { "title": "In sum, taking Plaintiffs’ allegations to be true and giving", "paragraphs": [ "para_991" ] }, { "title": "Manual declares (or, alternatively, implies) that Harley-", "paragraphs": [] }, { "title": "Davidson conditioned its warranty on its customers’ use of", "paragraphs": [ "para_994" ] }, { "title": "II", "paragraphs": [] }, { "title": "In my view, Plaintiffs also have plausibly alleged a tying", "paragraphs": [ "para_997", "para_998", "para_999", "para_1000", "para_1001", "para_1002", "para_1003", "para_1004", "para_1005" ] }, { "title": "Radiology, 38 F.4th 569, 573 (7th Cir. 2022). The majority opin-", "paragraphs": [ "para_1007" ] }, { "title": "34 No. 24-2111", "paragraphs": [ "para_1009", "para_1010" ] }, { "title": "First off, it is worth reiterating that this case is at the plead-", "paragraphs": [ "para_1012", "para_1013", "para_1014", "para_1015", "para_1016", "para_1017", "para_1018", "para_1019", "para_1020" ] }, { "title": "Co. v. Image Tech. Servs., Inc., 504 U.S. 451, 482 (1992) (internal", "paragraphs": [ "para_1022", "para_1023", "para_1024", "para_1025" ] }, { "title": "Coll. Athletic Ass’n, 143 F.4th 859, 870 (7th Cir. 2025) (citing", "paragraphs": [] }, { "title": "Todd v. Exxon Corp., 275 F.3d 191, 199–200 (2d Cir. 2001)); see", "paragraphs": [] }, { "title": "MCM Partners Inc. v. Andrews-Bartlett & Assocs., Inc., 62 F.3d", "paragraphs": [] }, { "title": "967, 972, 977 (7th Cir. 1995) (reversing dismissal of claim un-", "paragraphs": [ "para_1030", "para_1031" ] }, { "title": "Here, Plaintiffs allege that Harley-Davidson enjoys 80% of", "paragraphs": [ "para_1033", "para_1034" ] }, { "title": "1 One might question whether the tying product is the warranty or", "paragraphs": [ "para_1036", "para_1037", "para_1038" ] }, { "title": "No. 24-2111 35", "paragraphs": [ "para_1040", "para_1041", "para_1042", "para_1043", "para_1044" ] }, { "title": "A “relevant market” under the Sherman Act is comprised", "paragraphs": [ "para_1046", "para_1047", "para_1048", "para_1049", "para_1050" ] }, { "title": "LLC, 950 F.3d 911, 917 (7th Cir. 2020). The parties do not dis-", "paragraphs": [ "para_1052", "para_1053" ] }, { "title": "As for the product market, “[t]he Supreme Court has held", "paragraphs": [ "para_1055", "para_1056", "para_1057" ] }, { "title": "And “[t]he outer boundaries of a product market are deter-", "paragraphs": [ "para_1059", "para_1060", "para_1061", "para_1062" ] }, { "title": "Here, Plaintiffs allege that American-made motorcycles", "paragraphs": [ "para_1064", "para_1065", "para_1066", "para_1067", "para_1068", "para_1069" ] }, { "title": "36 No. 24-2111", "paragraphs": [] }, { "title": "See, e.g., McWane, Inc. v. FTC, 783 F.3d 814, 830 (11th Cir. 2015)", "paragraphs": [] }, { "title": "(defining product market as domestically manufactured pipe", "paragraphs": [ "para_1073" ] }, { "title": "274, 283 (5th Cir. 1984) (determining the relevant market to be", "paragraphs": [ "para_1075", "para_1076", "para_1077" ] }, { "title": "2013) (concluding that plaintiffs “have adequately pled that", "paragraphs": [ "para_1079", "para_1080" ] }, { "title": "Supp. 2d 62, 65 n.1 (E.D.N.Y. 2006) (accepting “at this stage of", "paragraphs": [ "para_1082", "para_1083", "para_1084" ] }, { "title": "Furthermore, to the extent that the market for American-", "paragraphs": [ "para_1086", "para_1087", "para_1088", "para_1089", "para_1090" ] }, { "title": "(recognizing that “within a broad market, well-defined sub-", "paragraphs": [ "para_1092", "para_1093", "para_1094" ] }, { "title": "First, the majority points out that the consumers in that case had", "paragraphs": [ "para_1096", "para_1097", "para_1098", "para_1099", "para_1100", "para_1101" ] }, { "title": "No. 24-2111 37", "paragraphs": [ "para_1103", "para_1104", "para_1105", "para_1106", "para_1107", "para_1108" ] }, { "title": "Although the majority protests that these practical indicia", "paragraphs": [ "para_1110", "para_1111", "para_1112", "para_1113", "para_1114", "para_1115" ] }, { "title": "The complaint also points to a long-running publication", "paragraphs": [ "para_1117", "para_1118", "para_1119", "para_1120" ] }, { "title": "Moreover, as the majority acknowledges, the complaint de-", "paragraphs": [ "para_1122", "para_1123" ] }, { "title": "When these allegations are taken to be true, “it is not in-", "paragraphs": [ "para_1125", "para_1126", "para_1127", "para_1128" ] }, { "title": "I believe that Plaintiffs have met it. See also Found. for Interior", "paragraphs": [] }, { "title": "Design Educ. Research v. Savannah Coll. of Art & Design, 244", "paragraphs": [] }, { "title": "F.3d 521, 531 (6th Cir. 2001) (noting that “[m]arket definition", "paragraphs": [] }, { "title": "38 No. 24-2111", "paragraphs": [ "para_1133", "para_1134" ] }, { "title": "The majority’s recasting of the relevant market as a", "paragraphs": [ "para_1136" ] }, { "title": "Plaintiffs plainly do not assert such a market. For its part, the", "paragraphs": [ "para_1138" ] }, { "title": "Davidson motorcycles are more expensive than others and", "paragraphs": [ "para_1140", "para_1141", "para_1142", "para_1143" ] }, { "title": "(another element of a § 1 tying claim), not the existence of a", "paragraphs": [ "para_1145" ] }, { "title": "Accordingly, I would conclude that Plaintiffs’ proposed", "paragraphs": [ "para_1147", "para_1148", "para_1149" ] }, { "title": "Moreover, for the reasons noted above, I believe that the", "paragraphs": [ "para_1151" ] }, { "title": "Harley-Davidson motorcycles, which are bundled with the", "paragraphs": [ "para_1153", "para_1154", "para_1155" ] }, { "title": "3 By contrast, the majority opinion gives no credit to the allegations", "paragraphs": [ "para_1157" ] }, { "title": "American-made motorcycles, finding instead that these efforts are “all in-", "paragraphs": [ "para_1159" ] }, { "title": "20. But, in doing so, it again gives Harley-Davidson the benefit of all fac-", "paragraphs": [ "para_1161" ] }, { "title": "No. 24-2111 39", "paragraphs": [ "para_1163", "para_1164" ] }, { "title": "Harley-Davidson has an economic interest in the sales of the", "paragraphs": [ "para_1166" ] }, { "title": "Harley-Davidson imposed a tying arrangement which", "paragraphs": [ "para_1168", "para_1169", "para_1170" ] }, { "title": "For these reasons, I would reverse and remand the judg-", "paragraphs": [ "para_1172", "para_1173", "para_1174", "para_1175", "para_1176", "para_1177" ] } ], "paragraphs": [ { "text": "In the", "paragraph_id": "para_1" }, { "text": "United States Court of Appeals", "paragraph_id": "para_2" }, { "text": "For the Seventh Circuit", "paragraph_id": "para_3" }, { "text": "____________________", "paragraph_id": "para_4" }, { "text": "No. 24-2111", "paragraph_id": "para_5" }, { "text": "IN RE: HARLEY-DAVIDSON AFTERMARKET PARTS MARKETING,", "paragraph_id": "para_6" }, { "text": "SALES PRACTICES AND ANTITRUST LITIGATION", "paragraph_id": "para_7" }, { "text": "EDWARD HEYMER, et al.,", "paragraph_id": "para_8" }, { "text": "Plaintiffs-Appellants", "paragraph_id": "para_9" }, { "text": "v.", "paragraph_id": "para_10" }, { "text": "HARLEY-DAVIDSON MOTOR COMPANY GROUP, LLC and HAR-", "paragraph_id": "para_11" }, { "text": "LEY-DAVIDSON MOTOR COMPANY, INCORPORATED,", "paragraph_id": "para_12" }, { "text": "Defendants-Appellees.", "paragraph_id": "para_13" }, { "text": "____________________", "paragraph_id": "para_14" }, { "text": "Appeal from the United States District Court for the", "paragraph_id": "para_15" }, { "text": "Eastern District of Wisconsin.", "paragraph_id": "para_16" }, { "text": "No. 23-MD-3064 — William C. Griesbach, Judge.", "paragraph_id": "para_17" }, { "text": "____________________", "paragraph_id": "para_18" }, { "text": "ARGUED DECEMBER 10, 2024 — DECIDED AUGUST 15, 2025", "paragraph_id": "para_19" }, { "text": "____________________", "paragraph_id": "para_20" }, { "text": "Before KIRSCH, LEE, and KOLAR, Circuit Judges.", "paragraph_id": "para_21" }, { "text": "KIRSCH, Circuit Judge. Harley-Davidson offers customers a", "paragraph_id": "para_22" }, { "text": "limited warranty when they purchase a new motorcycle.", "paragraph_id": "para_23" }, { "text": "Among other terms and conditions, Harley-Davidson limits", "paragraph_id": "para_24" }, { "text": "warranty coverage when non-Harley-Davidson parts are", "paragraph_id": "para_25" }, { "text": "2 No. 24-2111", "paragraph_id": "para_26" }, { "text": "installed in the motorcycle. Edward Heymer and 14 other cus-", "paragraph_id": "para_27" }, { "text": "tomers received this limited warranty when they purchased", "paragraph_id": "para_28" }, { "text": "their motorcycles. Fearing that non-Harley-Davidson parts", "paragraph_id": "para_29" }, { "text": "would void their warranties, they purchased higher-priced", "paragraph_id": "para_30" }, { "text": "Harley-Davidson parts instead. They then sued, claiming the", "paragraph_id": "para_31" }, { "text": "company’s warranty practices violate multiple provisions of", "paragraph_id": "para_32" }, { "text": "the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.,", "paragraph_id": "para_33" }, { "text": "and various state antitrust laws by conditioning warranty", "paragraph_id": "para_34" }, { "text": "coverage on the exclusive use of Harley-Davidson parts. We", "paragraph_id": "para_35" }, { "text": "conclude that the district court properly dismissed their com-", "paragraph_id": "para_36" }, { "text": "plaint for failure to state a claim.", "paragraph_id": "para_37" }, { "text": "The Warranty Act imposes both disclosure and content", "paragraph_id": "para_38" }, { "text": "obligations on warrantors. Heymer alleges that Harley-", "paragraph_id": "para_39" }, { "text": "Davidson’s warranty violates the Warranty Act’s anti-tying,", "paragraph_id": "para_40" }, { "text": "disclosure, and pre-sale availability provisions. But the terms", "paragraph_id": "para_41" }, { "text": "of the limited warranty do not create an express or implied", "paragraph_id": "para_42" }, { "text": "tie, which is necessary to make out a claim under the", "paragraph_id": "para_43" }, { "text": "Warranty Act’s anti-tying provision. Nor does the complaint", "paragraph_id": "para_44" }, { "text": "plausibly allege a violation of the disclosure provision, as it", "paragraph_id": "para_45" }, { "text": "fails to identify any standards or terms that were not fully", "paragraph_id": "para_46" }, { "text": "disclosed in the text of the warranty itself. And, finally, the", "paragraph_id": "para_47" }, { "text": "complaint’s bare assertion that Harley-Davidson does not", "paragraph_id": "para_48" }, { "text": "provide signs with warranty terms to dealers does not suffice", "paragraph_id": "para_49" }, { "text": "to allege noncompliance with the pre-sale availability rule.", "paragraph_id": "para_50" }, { "text": "Heymer’s antitrust claims likewise fail. The complaint ac-", "paragraph_id": "para_51" }, { "text": "cuses Harley-Davidson of illegal tying, attempted monopoli-", "paragraph_id": "para_52" }, { "text": "zation, and creating a Kodak-style lock-in by conditioning con-", "paragraph_id": "para_53" }, { "text": "tinued warranty coverage on the use of Harley-Davison parts.", "paragraph_id": "para_54" }, { "text": "But Heymer cannot make out a tying or attempted monopoli-", "paragraph_id": "para_55" }, { "text": "zation claim because the complaint fails to plausibly allege", "paragraph_id": "para_56" }, { "text": "that Harley-Davidson exercises sufficient economic power in", "paragraph_id": "para_57" }, { "text": "No. 24-2111 3", "paragraph_id": "para_58" }, { "text": "either the relevant market for motorcycles or the aftermarket", "paragraph_id": "para_59" }, { "text": "for compatible parts. The complaint also fails to allege infor-", "paragraph_id": "para_60" }, { "text": "mation or switching costs that would enable Heymer to make", "paragraph_id": "para_61" }, { "text": "out a plausible Kodak-style lock-in claim. For these reasons, we", "paragraph_id": "para_62" }, { "text": "affirm.", "paragraph_id": "para_63" }, { "text": "I", "paragraph_id": "para_64" }, { "text": "This appeal arises out of a motion to dismiss, so we accept", "paragraph_id": "para_65" }, { "text": "the well-pleaded facts in the complaint, recounted below, as", "paragraph_id": "para_66" }, { "text": "true. Boogaard v. Nat’l Hockey League, 891 F.3d 289, 290 (7th Cir.", "paragraph_id": "para_67" }, { "text": "2018). “That does not mean, however, that we vouch for their", "paragraph_id": "para_68" }, { "text": "accuracy.” Id. at 290–91. And to the extent the allegations in", "paragraph_id": "para_69" }, { "text": "the complaint are contradicted by the terms of the limited", "paragraph_id": "para_70" }, { "text": "warranty, the warranty’s language controls. See Chi. Dist.", "paragraph_id": "para_71" }, { "text": "Council of Carpenters Welfare Fund v. Caremark, Inc., 474 F.3d", "paragraph_id": "para_72" }, { "text": "463, 466 (7th Cir. 2007). Although the plaintiffs did not attach", "paragraph_id": "para_73" }, { "text": "copies of their limited warranties to the complaint, copies", "paragraph_id": "para_74" }, { "text": "were included in the motion to dismiss. Because the limited", "paragraph_id": "para_75" }, { "text": "warranty is referred to in the complaint and central to the", "paragraph_id": "para_76" }, { "text": "plaintiffs’ claims, we can consider it under the incorporation-", "paragraph_id": "para_77" }, { "text": "by-reference doctrine. Brownmark Films, LLC v. Comedy Part-", "paragraph_id": "para_78" }, { "text": "ners, 682 F.3d 687, 690 (7th Cir. 2012).", "paragraph_id": "para_79" }, { "text": "A", "paragraph_id": "para_80" }, { "text": "Harley-Davidson Motor Company Group, LLC and", "paragraph_id": "para_81" }, { "text": "Harley-Davidson Motor Company, Inc. (collectively, Harley-", "paragraph_id": "para_82" }, { "text": "Davidson) manufacture and sell motorcycles to consumers", "paragraph_id": "para_83" }, { "text": "throughout the United States. It is one of only a few American", "paragraph_id": "para_84" }, { "text": "motorcycle brands and the most popular one by far. The", "paragraph_id": "para_85" }, { "text": "company is known for its large, roadgoing motorcycles,", "paragraph_id": "para_86" }, { "text": "which have greater passenger and cargo capacity than smaller", "paragraph_id": "para_87" }, { "text": "motorcycles. Harley-Davidson markets itself as an all-", "paragraph_id": "para_88" }, { "text": "4 No. 24-2111", "paragraph_id": "para_89" }, { "text": "American brand and appeals to consumers that seek to", "paragraph_id": "para_90" }, { "text": "celebrate their shared national heritage through their", "paragraph_id": "para_91" }, { "text": "motorcycles. The company’s marketing effort has largely", "paragraph_id": "para_92" }, { "text": "been successful in cultivating a loyal following. Harley-", "paragraph_id": "para_93" }, { "text": "Davidson captures one-fifth of the domestic market for large,", "paragraph_id": "para_94" }, { "text": "roadgoing motorcycles—the largest market share of any", "paragraph_id": "para_95" }, { "text": "brand. Five foreign brands make up another half of the", "paragraph_id": "para_96" }, { "text": "market. The market for the next largest American brand,", "paragraph_id": "para_97" }, { "text": "Indian Motorcycle Inc., is small by comparison—no more", "paragraph_id": "para_98" }, { "text": "than one-sixth the size of Harley-Davidson’s.", "paragraph_id": "para_99" }, { "text": "Apart from motorcycles, Harley-Davidson also", "paragraph_id": "para_100" }, { "text": "manufactures and sells motorcycle parts and accessories.", "paragraph_id": "para_101" }, { "text": "Because Harley-Davidson owners are willing to keep their", "paragraph_id": "para_102" }, { "text": "motorcycles on the road for generations, the demand for parts", "paragraph_id": "para_103" }, { "text": "to repair and customize Harley-Davidson motorcycles is", "paragraph_id": "para_104" }, { "text": "substantial. About 15 percent of the company’s revenue", "paragraph_id": "para_105" }, { "text": "comes from selling parts. And there is a robust marketplace", "paragraph_id": "para_106" }, { "text": "of suppliers offering parts and accessories compatible with", "paragraph_id": "para_107" }, { "text": "Harley-Davidson motorcycles, giving customers a wide", "paragraph_id": "para_108" }, { "text": "variety from which to choose. Still, Harley-Davidson is the", "paragraph_id": "para_109" }, { "text": "largest supplier of parts compatible with its motorcycles.", "paragraph_id": "para_110" }, { "text": "In addition to selling parts, Harley-Davidson also supplies", "paragraph_id": "para_111" }, { "text": "them to customers as part of its limited warranty program.", "paragraph_id": "para_112" }, { "text": "Under the terms of the limited warranty, an authorized", "paragraph_id": "para_113" }, { "text": "Harley-Davidson dealer will repair or replace any defective", "paragraph_id": "para_114" }, { "text": "part on a customer’s new motorcycle without charge for up to", "paragraph_id": "para_115" }, { "text": "24 months. However, the limited warranty comes with certain", "paragraph_id": "para_116" }, { "text": "conditions and limitations on its coverage. For example, the", "paragraph_id": "para_117" }, { "text": "warranty does not cover defects or damage caused by parts or", "paragraph_id": "para_118" }, { "text": "accessories that are not approved for the motorcycle, or", "paragraph_id": "para_119" }, { "text": "damage caused using non-Harley-Davidson components.", "paragraph_id": "para_120" }, { "text": "No. 24-2111 5", "paragraph_id": "para_121" }, { "text": "Although the limited warranty is included in the owner’s", "paragraph_id": "para_122" }, { "text": "manual as its own, discrete section, it also references other", "paragraph_id": "para_123" }, { "text": "parts of the owner’s manual. For example, the limited war-", "paragraph_id": "para_124" }, { "text": "ranty says the motorcycle must be operated and maintained", "paragraph_id": "para_125" }, { "text": "as specified in the owner’s manual. Then, in a section of the", "paragraph_id": "para_126" }, { "text": "owner’s manual titled “Warranties and Responsibilities,”", "paragraph_id": "para_127" }, { "text": "Harley-Davidson explains that the owner must follow the", "paragraph_id": "para_128" }, { "text": "maintenance schedule in the owner’s manual to keep the lim-", "paragraph_id": "para_129" }, { "text": "ited warranty valid. This section also includes the following", "paragraph_id": "para_130" }, { "text": "statements:", "paragraph_id": "para_131" }, { "text": "Use only Harley-Davidson approved parts and", "paragraph_id": "para_132" }, { "text": "accessories that have been designed, tested and", "paragraph_id": "para_133" }, { "text": "approved for your model and model year mo-", "paragraph_id": "para_134" }, { "text": "torcycle.", "paragraph_id": "para_135" }, { "text": "Use of aftermarket performance parts may void", "paragraph_id": "para_136" }, { "text": "all or parts of your limited warranty. See an au-", "paragraph_id": "para_137" }, { "text": "thorized Harley-Davidson dealer for details.", "paragraph_id": "para_138" }, { "text": "….", "paragraph_id": "para_139" }, { "text": "Genuine Harley-Davidson parts are engineered", "paragraph_id": "para_140" }, { "text": "and tested specifically for use on your", "paragraph_id": "para_141" }, { "text": "motorcycle. Insist that your authorized Harley-", "paragraph_id": "para_142" }, { "text": "Davidson dealer uses only genuine Harley-", "paragraph_id": "para_143" }, { "text": "Davidson replacement parts and accessories to", "paragraph_id": "para_144" }, { "text": "keep your Harley-Davidson motorcycle and its", "paragraph_id": "para_145" }, { "text": "limited warranty intact. Not all Harley-", "paragraph_id": "para_146" }, { "text": "Davidson parts and accessories are appropriate", "paragraph_id": "para_147" }, { "text": "for your model or model year motorcycle.", "paragraph_id": "para_148" }, { "text": "….", "paragraph_id": "para_149" }, { "text": "Installing off-road or competition parts to en-", "paragraph_id": "para_150" }, { "text": "hance performance may void all or parts of your", "paragraph_id": "para_151" }, { "text": "6 No. 24-2111", "paragraph_id": "para_152" }, { "text": "limited warranty. See the Harley-Davidson Mo-", "paragraph_id": "para_153" }, { "text": "torcycle Limited Warranty in this owner’s man-", "paragraph_id": "para_154" }, { "text": "ual or an authorized Harley-Davidson dealer", "paragraph_id": "para_155" }, { "text": "for details.", "paragraph_id": "para_156" }, { "text": "And in the section of the owner’s manual that outlines the", "paragraph_id": "para_157" }, { "text": "maintenance schedule, Harley-Davidson again cautions that", "paragraph_id": "para_158" }, { "text": "the use of parts and service procedures other than those ap-", "paragraph_id": "para_159" }, { "text": "proved by Harley-Davidson may void the limited warranty.", "paragraph_id": "para_160" }, { "text": "B", "paragraph_id": "para_161" }, { "text": "In 2022, the Federal Trade Commission issued a complaint", "paragraph_id": "para_162" }, { "text": "against Harley-Davidson for its warranty practices. The", "paragraph_id": "para_163" }, { "text": "agency alleged that the company violated the Magnuson-", "paragraph_id": "para_164" }, { "text": "Moss Warranty Act (the Warranty Act), 15 U.S.C. § 2301 et", "paragraph_id": "para_165" }, { "text": "seq., by unlawfully conditioning its limited warranty on the", "paragraph_id": "para_166" }, { "text": "exclusive use of Harley-Davidson parts and accessories and", "paragraph_id": "para_167" }, { "text": "by failing to properly disclose all the terms of its warranty in", "paragraph_id": "para_168" }, { "text": "a single document. Harley-Davidson settled with the FTC and", "paragraph_id": "para_169" }, { "text": "entered into a consent decree that required the company to", "paragraph_id": "para_170" }, { "text": "change its warranty practices.", "paragraph_id": "para_171" }, { "text": "Around the same time, Edward Heymer and several other", "paragraph_id": "para_172" }, { "text": "customers sued Harley-Davidson, raising similar complaints.", "paragraph_id": "para_173" }, { "text": "The United States Judicial Panel on Multidistrict Litigation", "paragraph_id": "para_174" }, { "text": "transferred these suits to the Eastern District of Wisconsin for", "paragraph_id": "para_175" }, { "text": "consolidated pretrial proceedings. In the operative consoli-", "paragraph_id": "para_176" }, { "text": "dated complaint, Heymer and 14 other named plaintiffs (col-", "paragraph_id": "para_177" }, { "text": "lectively, Heymer) allege that they received limited warran-", "paragraph_id": "para_178" }, { "text": "ties from Harley-Davidson when they purchased their motor-", "paragraph_id": "para_179" }, { "text": "cycles. Fearing that the use of non-Harley-Davidson parts", "paragraph_id": "para_180" }, { "text": "would void his warranty, Heymer says he purchased higher-", "paragraph_id": "para_181" }, { "text": "priced Harley-Davidson parts instead. Heymer claims that", "paragraph_id": "para_182" }, { "text": "No. 24-2111 7", "paragraph_id": "para_183" }, { "text": "Harley-Davidson’s warranty practices violate the Warranty", "paragraph_id": "para_184" }, { "text": "Act and various state laws. He seeks to represent a class of", "paragraph_id": "para_185" }, { "text": "Harley-Davidson consumers who are similarly situated.", "paragraph_id": "para_186" }, { "text": "Harley-Davidson moved under Federal Rule of Civil Pro-", "paragraph_id": "para_187" }, { "text": "cedure 12(b)(6) to dismiss the consolidated class action com-", "paragraph_id": "para_188" }, { "text": "plaint for failing to state a claim, which the district court", "paragraph_id": "para_189" }, { "text": "granted. The district court found that the limited warranty", "paragraph_id": "para_190" }, { "text": "did not condition the benefits of the warranty on the use of", "paragraph_id": "para_191" }, { "text": "Harley-Davidson parts or otherwise state a viable claim un-", "paragraph_id": "para_192" }, { "text": "der the Warranty Act. The district court also held that the risk", "paragraph_id": "para_193" }, { "text": "of losing warranty coverage is not in itself sufficient to make", "paragraph_id": "para_194" }, { "text": "out an anticompetitive tying arrangement or economic forc-", "paragraph_id": "para_195" }, { "text": "ing claim under state antitrust law. Because the other state", "paragraph_id": "para_196" }, { "text": "law claims were premised on the same anticompetitive be-", "paragraph_id": "para_197" }, { "text": "havior, the district court dismissed them as well. This appeal", "paragraph_id": "para_198" }, { "text": "followed. We review the dismissal of Heymer’s claims de", "paragraph_id": "para_199" }, { "text": "novo. Hagan v. Quinn, 867 F.3d 816, 820 (7th Cir. 2017).", "paragraph_id": "para_200" }, { "text": "II", "paragraph_id": "para_201" }, { "text": "Before turning to the merits, we must first assure ourselves", "paragraph_id": "para_202" }, { "text": "that this action can be heard in federal court. See Yancheng", "paragraph_id": "para_203" }, { "text": "Shanda Yuanfeng Equity Inv. P’ship v. Wan, 59 F.4th 262, 268", "paragraph_id": "para_204" }, { "text": "(7th Cir. 2023). We agree with the parties that the district court", "paragraph_id": "para_205" }, { "text": "had diversity jurisdiction over the state law claims under the", "paragraph_id": "para_206" }, { "text": "Class Action Fairness Act (CAFA), 28 U.S.C. § 1332(d). There", "paragraph_id": "para_207" }, { "text": "are at least 100 members in the proposed class, their claims", "paragraph_id": "para_208" }, { "text": "collectively exceed five million dollars, and some class mem-", "paragraph_id": "para_209" }, { "text": "bers are citizens of a different state than Harley-Davidson. Id.", "paragraph_id": "para_210" }, { "text": "§ 1332(d)(2), (5)(B), (6). The Warranty Act claims present a", "paragraph_id": "para_211" }, { "text": "more difficult question. Usually, the federal question jurisdic-", "paragraph_id": "para_212" }, { "text": "tion statute, id. § 1331, would provide the basis for the district", "paragraph_id": "para_213" }, { "text": "court’s jurisdiction over federal claims. But the Warranty Act", "paragraph_id": "para_214" }, { "text": "8 No. 24-2111", "paragraph_id": "para_215" }, { "text": "includes additional criteria that limit district courts’ authority", "paragraph_id": "para_216" }, { "text": "to exercise federal question jurisdiction. Ware v. Best Buy", "paragraph_id": "para_217" }, { "text": "Stores, L.P., 6 F.4th 726, 731 (7th Cir. 2021). Relevant here, it", "paragraph_id": "para_218" }, { "text": "provides that class actions cannot be brought in federal court", "paragraph_id": "para_219" }, { "text": "if the number of named plaintiffs is less than 100. 15 U.S.C.", "paragraph_id": "para_220" }, { "text": "§ 2310(d)(1)(B) & (3)(C). There are only 15 named plaintiffs in", "paragraph_id": "para_221" }, { "text": "this action.", "paragraph_id": "para_222" }, { "text": "The parties suggest that the Warranty Act’s jurisdictional", "paragraph_id": "para_223" }, { "text": "limitation is irrelevant because the district court could exer-", "paragraph_id": "para_224" }, { "text": "cise jurisdiction under CAFA, which does not require 100", "paragraph_id": "para_225" }, { "text": "named plaintiffs. Courts are split on how to resolve the con-", "paragraph_id": "para_226" }, { "text": "flicting class requirements of CAFA and the Warranty Act.", "paragraph_id": "para_227" }, { "text": "The Third and Ninth Circuits have held that CAFA does not", "paragraph_id": "para_228" }, { "text": "apply to Warranty Act claims, reasoning that if it did then", "paragraph_id": "para_229" }, { "text": "CAFA would effectively repeal by implication the Warranty", "paragraph_id": "para_230" }, { "text": "Act’s more restrictive criteria. Floyd v. Am. Honda Motor Co.,", "paragraph_id": "para_231" }, { "text": "966 F.3d 1027, 1034–35 (9th Cir. 2020); Rowland v. Bissell", "paragraph_id": "para_232" }, { "text": "Homecare, Inc., 73 F.4th 177, 183–85 (3d Cir. 2023). In an un-", "paragraph_id": "para_233" }, { "text": "published opinion, the Sixth Circuit took the opposite ap-", "paragraph_id": "para_234" }, { "text": "proach, holding that “CAFA effectively supersedes the [War-", "paragraph_id": "para_235" }, { "text": "ranty Act]’s more stringent jurisdictional requirements” in", "paragraph_id": "para_236" }, { "text": "part because it is “the more recent of the two statutes.” Kuns", "paragraph_id": "para_237" }, { "text": "v. Ford Motor Co., 543 F. App’x 572, 574 (6th Cir. 2013). Other", "paragraph_id": "para_238" }, { "text": "courts have held that the Warranty Act’s jurisdictional limita-", "paragraph_id": "para_239" }, { "text": "tions restrict federal question jurisdiction, but do not affect di-", "paragraph_id": "para_240" }, { "text": "versity jurisdiction. E.g., In re Generac Solar Power Sys. Mktg.,", "paragraph_id": "para_241" }, { "text": "Sales Pracs. & Prods. Liab. Litig., 735 F. Supp. 3d 1036, 1043–45", "paragraph_id": "para_242" }, { "text": "(E.D. Wis. 2024).", "paragraph_id": "para_243" }, { "text": "We have yet to resolve the jurisdictional interplay between", "paragraph_id": "para_244" }, { "text": "the Warranty Act and CAFA. See Ware, 6 F.4th at 733 n.2. Nor", "paragraph_id": "para_245" }, { "text": "must we in this case. Because the Warranty Act claims arise", "paragraph_id": "para_246" }, { "text": "No. 24-2111 9", "paragraph_id": "para_247" }, { "text": "out of the same controversy as the state law claims, the district", "paragraph_id": "para_248" }, { "text": "court could have exercised supplemental jurisdiction over the", "paragraph_id": "para_249" }, { "text": "Warranty Act claims. 28 U.S.C. § 1367(a); Voelker v. Porsche", "paragraph_id": "para_250" }, { "text": "Cars N. Am., Inc., 353 F.3d 516, 522 (7th Cir. 2003). And once", "paragraph_id": "para_251" }, { "text": "we determine that the district court could have exercised sup-", "paragraph_id": "para_252" }, { "text": "plemental jurisdiction over a claim it decided on the merits,", "paragraph_id": "para_253" }, { "text": "“the existence of federal jurisdiction over that claim is estab-", "paragraph_id": "para_254" }, { "text": "lished and our review is limited to whether the district court’s", "paragraph_id": "para_255" }, { "text": "discretion was abused.” Voelker, 353 F.3d at 522. Here, neither", "paragraph_id": "para_256" }, { "text": "party objected to the district court’s “de facto exercise of its", "paragraph_id": "para_257" }, { "text": "supplemental jurisdiction.” Id. Having assured ourselves of", "paragraph_id": "para_258" }, { "text": "jurisdiction, we turn next to the merits of the Warranty Act", "paragraph_id": "para_259" }, { "text": "claims.", "paragraph_id": "para_260" }, { "text": "III", "paragraph_id": "para_261" }, { "text": "Prior to the passage of the Warranty Act, product warran-", "paragraph_id": "para_262" }, { "text": "ties were often “too complex to be understood, too varied to", "paragraph_id": "para_263" }, { "text": "allow meaningful comparisons and too restricted to provide", "paragraph_id": "para_264" }, { "text": "meaningful warranty protection.” Skelton v. Gen. Motors Corp.,", "paragraph_id": "para_265" }, { "text": "660 F.2d 311, 314 (7th Cir. 1981). To remedy this, the Warranty", "paragraph_id": "para_266" }, { "text": "Act imposed certain disclosure requirements and minimum", "paragraph_id": "para_267" }, { "text": "content standards on warrantors like Harley-Davidson. Id.", "paragraph_id": "para_268" }, { "text": "These provisions “improve the adequacy of information", "paragraph_id": "para_269" }, { "text": "available to consumers, prevent deception, and improve com-", "paragraph_id": "para_270" }, { "text": "petition in the marketing of consumer products.” 15 U.S.C.", "paragraph_id": "para_271" }, { "text": "§ 2302(a). Three provisions are relevant here: § 2302(c), (a),", "paragraph_id": "para_272" }, { "text": "and (b).", "paragraph_id": "para_273" }, { "text": "A", "paragraph_id": "para_274" }, { "text": "First, § 2302(c) precludes warrantors from conditioning a", "paragraph_id": "para_275" }, { "text": "warranty on the consumer’s use of an article or service iden-", "paragraph_id": "para_276" }, { "text": "tified by brand name unless the article or service is provided", "paragraph_id": "para_277" }, { "text": "10 No. 24-2111", "paragraph_id": "para_278" }, { "text": "free of charge. This anti-tying provision prohibits conditions", "paragraph_id": "para_279" }, { "text": "like: “This warranty is void if service is performed by anyone", "paragraph_id": "para_280" }, { "text": "other than an authorized ‘ABC’ dealer and all replacement", "paragraph_id": "para_281" }, { "text": "parts must be genuine ‘ABC’ parts.” 16 C.F.R. § 700.10(c).1 But", "paragraph_id": "para_282" }, { "text": "it does not prevent a warrantor from excluding warranty cov-", "paragraph_id": "para_283" }, { "text": "erage for defects or damage caused by using unauthorized", "paragraph_id": "para_284" }, { "text": "parts or services. Id.", "paragraph_id": "para_285" }, { "text": "Heymer alleges that certain statements in Harley-", "paragraph_id": "para_286" }, { "text": "Davidson’s owner’s manual violate the Warranty Act’s anti-", "paragraph_id": "para_287" }, { "text": "tying provision, including: “Use only Harley-Davidson", "paragraph_id": "para_288" }, { "text": "approved parts and accessories that have been designed,", "paragraph_id": "para_289" }, { "text": "tested and approved for your model and model year", "paragraph_id": "para_290" }, { "text": "motorcycle. Use of aftermarket performance parts may void", "paragraph_id": "para_291" }, { "text": "all or parts of your limited warranty.” “Insist that your", "paragraph_id": "para_292" }, { "text": "authorized Harley-Davidson dealer uses only genuine", "paragraph_id": "para_293" }, { "text": "Harley-Davidson replacement parts and accessories to keep", "paragraph_id": "para_294" }, { "text": "your Harley-Davidson motorcycle and its limited warranty", "paragraph_id": "para_295" }, { "text": "intact.” And: “The use of parts and service procedures other", "paragraph_id": "para_296" }, { "text": "than Harley-Davidson approved parts and service", "paragraph_id": "para_297" }, { "text": "procedures may void the limited warranty.”", "paragraph_id": "para_298" }, { "text": "1 The FTC’s regulatory guidance is only “advisory in nature” and", "paragraph_id": "para_299" }, { "text": "“do[es] not have the force or effect of statutory provisions.” Magnuson-", "paragraph_id": "para_300" }, { "text": "Moss Warranty Act: Interpretations and Explanatory Statement, 42 Fed.", "paragraph_id": "para_301" }, { "text": "Reg. 36111, 36112 (July 13, 1977). But where, like here, an agency interpre-", "paragraph_id": "para_302" }, { "text": "tation is issued shortly after a statute’s passage and remains consistent", "paragraph_id": "para_303" }, { "text": "over time, it is entitled to great respect. Loper Bright Enters. v. Raimondo,", "paragraph_id": "para_304" }, { "text": "603 U.S. 369, 385–86 (2024); see also Miller v. Herman, 600 F.3d 726, 733–34", "paragraph_id": "para_305" }, { "text": "(7th Cir. 2010) (giving Skidmore deference to the FTC’s interpretations of", "paragraph_id": "para_306" }, { "text": "the Warranty Act). Neither party disputes the persuasive authority of", "paragraph_id": "para_307" }, { "text": "§ 700.10(c).", "paragraph_id": "para_308" }, { "text": "No. 24-2111 11", "paragraph_id": "para_309" }, { "text": "These statements are neither in the limited warranty nor", "paragraph_id": "para_310" }, { "text": "purport to modify or supplement its terms. Instead, they", "paragraph_id": "para_311" }, { "text": "simply offer a general warning to consumers that using unau-", "paragraph_id": "para_312" }, { "text": "thorized parts in their motorcycles may void the warranty and", "paragraph_id": "para_313" }, { "text": "advise them to avoid doing so. Such cautionary language", "paragraph_id": "para_314" }, { "text": "does not run afoul of § 2302(c). To understand when using", "paragraph_id": "para_315" }, { "text": "unauthorized parts will void the limited warranty, consumers", "paragraph_id": "para_316" }, { "text": "can refer to the actual terms of the warranty. Had Heymer", "paragraph_id": "para_317" }, { "text": "done so, he would have seen that unauthorized parts void the", "paragraph_id": "para_318" }, { "text": "warranty when they cause defects or damage to the motorcy-", "paragraph_id": "para_319" }, { "text": "cle or cause a Harley-Davidson part to fail. These are not the", "paragraph_id": "para_320" }, { "text": "kinds of conditions that violate § 2302(c). See 16 C.F.R.", "paragraph_id": "para_321" }, { "text": "§ 700.10(c).", "paragraph_id": "para_322" }, { "text": "It is true that the limited warranty says customers must", "paragraph_id": "para_323" }, { "text": "operate and maintain their motorcycles as specified in the", "paragraph_id": "para_324" }, { "text": "owner’s manual, which indicates that statements made in", "paragraph_id": "para_325" }, { "text": "other sections of the owner’s manual can also affect the valid-", "paragraph_id": "para_326" }, { "text": "ity of the warranty. But when that is the case, the owner’s", "paragraph_id": "para_327" }, { "text": "manual says so expressly (e.g., “All of the specified mainte-", "paragraph_id": "para_328" }, { "text": "nance services must be performed on schedule to keep your", "paragraph_id": "para_329" }, { "text": "limited warranty valid.” “The performance of new motorcy-", "paragraph_id": "para_330" }, { "text": "cle initial service is required to keep your new motorcycle war-", "paragraph_id": "para_331" }, { "text": "ranty in force ….”) (emphases added). The cautionary state-", "paragraph_id": "para_332" }, { "text": "ments Heymer asks us to consider lack such unambiguous", "paragraph_id": "para_333" }, { "text": "language.", "paragraph_id": "para_334" }, { "text": "We are cognizant of the fact that the FTC issued a com-", "paragraph_id": "para_335" }, { "text": "plaint alleging that Harley-Davidson’s warranty practices vi-", "paragraph_id": "para_336" }, { "text": "olate § 2302(c). However, allegations made by the FTC in a", "paragraph_id": "para_337" }, { "text": "complaint reflect “a threshold determination that further in-", "paragraph_id": "para_338" }, { "text": "quiry is warranted and that a complaint should initiate pro-", "paragraph_id": "para_339" }, { "text": "ceedings” rather than “a definitive statement of position.”", "paragraph_id": "para_340" }, { "text": "12 No. 24-2111", "paragraph_id": "para_341" }, { "text": "FTC v. Standard Oil Co. of Cal., 449 U.S. 232, 241 (1980). That is", "paragraph_id": "para_342" }, { "text": "not the kind of informed agency judgment we look to for", "paragraph_id": "para_343" }, { "text": "guidance when interpreting a statute. Loper Bright Enters., 603", "paragraph_id": "para_344" }, { "text": "U.S. at 394.", "paragraph_id": "para_345" }, { "text": "In the alternative, Heymer contends that even if these", "paragraph_id": "para_346" }, { "text": "statements do not create an actual tie, they are still impermis-", "paragraph_id": "para_347" }, { "text": "sible because they deceptively imply that consumers must", "paragraph_id": "para_348" }, { "text": "only use Harley-Davidson parts to keep their warranties", "paragraph_id": "para_349" }, { "text": "valid. We can assume, without deciding, that § 2302(c) or", "paragraph_id": "para_350" }, { "text": "§ 2310(c)(1) prohibit implied tying and that Heymer could", "paragraph_id": "para_351" }, { "text": "bring a claim against that practice under § 2310(d)(1), but that", "paragraph_id": "para_352" }, { "text": "is far from clear.", "paragraph_id": "para_353" }, { "text": "To support an implied tying theory of liability, Heymer", "paragraph_id": "para_354" }, { "text": "points again to the FTC’s interpretive guidance for § 2302(c),", "paragraph_id": "para_355" }, { "text": "which says:", "paragraph_id": "para_356" }, { "text": "In addition, warranty language that implies to a", "paragraph_id": "para_357" }, { "text": "consumer acting reasonably in the circum-", "paragraph_id": "para_358" }, { "text": "stances that warranty coverage requires the con-", "paragraph_id": "para_359" }, { "text": "sumer’s purchase of an article or service identi-", "paragraph_id": "para_360" }, { "text": "fied by brand … name is similarly deceptive.", "paragraph_id": "para_361" }, { "text": "For example, a provision in the warranty such", "paragraph_id": "para_362" }, { "text": "as, “use only an authorized ‘ABC’ dealer” or", "paragraph_id": "para_363" }, { "text": "“use only ‘ABC’ replacement parts,” is prohib-", "paragraph_id": "para_364" }, { "text": "ited where the service or parts are not provided", "paragraph_id": "para_365" }, { "text": "free of charge pursuant to the warranty. This", "paragraph_id": "para_366" }, { "text": "does not preclude a warrantor from expressly", "paragraph_id": "para_367" }, { "text": "excluding liability for defects or damage caused", "paragraph_id": "para_368" }, { "text": "by “unauthorized” articles or service; nor does", "paragraph_id": "para_369" }, { "text": "it preclude the warrantor from denying liability", "paragraph_id": "para_370" }, { "text": "where the warrantor can demonstrate that the", "paragraph_id": "para_371" }, { "text": "defect or damage was so caused.", "paragraph_id": "para_372" }, { "text": "No. 24-2111 13", "paragraph_id": "para_373" }, { "text": "16 C.F.R. § 700.10.", "paragraph_id": "para_374" }, { "text": "We agree with Heymer that the statements in the owner’s", "paragraph_id": "para_375" }, { "text": "manual that he complains of are best understood as implied", "paragraph_id": "para_376" }, { "text": "ties. In fact, “Use only Harley-Davidson approved parts and", "paragraph_id": "para_377" }, { "text": "accessories” and “Insist that your authorized Harley-", "paragraph_id": "para_378" }, { "text": "Davidson dealer uses only genuine Harley-Davidson", "paragraph_id": "para_379" }, { "text": "replacement parts and accessories to keep your Harley-", "paragraph_id": "para_380" }, { "text": "Davidson motorcycle and its limited warranty intact” both", "paragraph_id": "para_381" }, { "text": "closely mirror the FTC’s example of an implied tie in § 700.10.", "paragraph_id": "para_382" }, { "text": "As was the case with Heymer’s express tying theory, how-", "paragraph_id": "para_383" }, { "text": "ever, a claim for implied tying fails when we consider the rel-", "paragraph_id": "para_384" }, { "text": "evant portions of the owner’s manual and limited warranty", "paragraph_id": "para_385" }, { "text": "together. Express warranties are a part of contracts, present", "paragraph_id": "para_386" }, { "text": "the same interpretive problems, see Lyon Fin. Servs., Inc. v. Ill.", "paragraph_id": "para_387" }, { "text": "Paper & Copier Co., 732 F.3d 755, 762 (7th Cir. 2013), and must", "paragraph_id": "para_388" }, { "text": "be read as a whole, not by assessing each individual provision", "paragraph_id": "para_389" }, { "text": "independently, Young v. Verizon’s Bell Atl. Cash Balance Plan,", "paragraph_id": "para_390" }, { "text": "615 F.3d 808, 823 (7th Cir. 2010).", "paragraph_id": "para_391" }, { "text": "The limited warranty clearly disclaimed any ties (express", "paragraph_id": "para_392" }, { "text": "or implied) because it spelled out exactly how non-Harley-", "paragraph_id": "para_393" }, { "text": "Davidson parts could affect warranty coverage. The warranty", "paragraph_id": "para_394" }, { "text": "said that Harley-Davison would not cover defects or damage", "paragraph_id": "para_395" }, { "text": "caused by parts or accessories that weren’t approved, or dam-", "paragraph_id": "para_396" }, { "text": "age caused by non-Harley-Davison components. That’s the", "paragraph_id": "para_397" }, { "text": "kind of disclaimer that § 700.10 authorizes. The warnings in", "paragraph_id": "para_398" }, { "text": "the owner’s manual put consumers on notice of potential con-", "paragraph_id": "para_399" }, { "text": "sequences with the use of non-Harley-Davidson components.", "paragraph_id": "para_400" }, { "text": "But the details were in the limited warranty itself, and those", "paragraph_id": "para_401" }, { "text": "details are fully compliant with any prohibition on implied", "paragraph_id": "para_402" }, { "text": "ties. We don’t rule out the possibility that some future case", "paragraph_id": "para_403" }, { "text": "might involve a warranty combining an express disclaimer", "paragraph_id": "para_404" }, { "text": "14 No. 24-2111", "paragraph_id": "para_405" }, { "text": "with a wealth of implied ties, such that the warranty would", "paragraph_id": "para_406" }, { "text": "deceive a reasonable consumer. But the warranty before us—", "paragraph_id": "para_407" }, { "text": "with a clear, acceptable exclusion provision combined with", "paragraph_id": "para_408" }, { "text": "more general warnings in a separate document—does not", "paragraph_id": "para_409" }, { "text": "cross that threshold. See Bell v. Publix Super Markets, Inc., 982", "paragraph_id": "para_410" }, { "text": "F.3d 468, 477 (7th Cir. 2020).", "paragraph_id": "para_411" }, { "text": "Heymer is entitled to all reasonable inferences. But the in-", "paragraph_id": "para_412" }, { "text": "terpretation of an unambiguous contract is a question of law,", "paragraph_id": "para_413" }, { "text": "suitable for decision on the pleadings. See First Ins. Funding", "paragraph_id": "para_414" }, { "text": "Corp. v. Fed. Ins. Co., 284 F.3d 799, 804 (7th Cir. 2002). Consid-", "paragraph_id": "para_415" }, { "text": "ering this contract as a whole, it’s not reasonable to infer that", "paragraph_id": "para_416" }, { "text": "Harley-Davidson’s limited warranty implied that consumers", "paragraph_id": "para_417" }, { "text": "had to use the company’s products to maintain the validity of", "paragraph_id": "para_418" }, { "text": "the warranty.", "paragraph_id": "para_419" }, { "text": "B", "paragraph_id": "para_420" }, { "text": "Heymer’s next claim arises under § 2302(a). This provision", "paragraph_id": "para_421" }, { "text": "requires warrantors to “fully and conspicuously disclose in", "paragraph_id": "para_422" }, { "text": "simple and readily understood language the terms and con-", "paragraph_id": "para_423" }, { "text": "ditions of such warranty” as required by the FTC. 15 U.S.C.", "paragraph_id": "para_424" }, { "text": "§ 2302(a); see also 16 C.F.R. § 701.3(a)(2)–(3) (adopting this", "paragraph_id": "para_425" }, { "text": "language). Heymer says Harley-Davidson’s limited warranty", "paragraph_id": "para_426" }, { "text": "does not fully explain the conditions on coverage and instead", "paragraph_id": "para_427" }, { "text": "requires customers to see an authorized Harley-Davidson", "paragraph_id": "para_428" }, { "text": "dealer for details.", "paragraph_id": "para_429" }, { "text": "However, Heymer never articulates what warranty terms", "paragraph_id": "para_430" }, { "text": "Harley-Davidson purportedly applies that are not fully and", "paragraph_id": "para_431" }, { "text": "conspicuously disclosed by the limited warranty. Advising", "paragraph_id": "para_432" }, { "text": "customers to speak with a dealer for details does not suggest", "paragraph_id": "para_433" }, { "text": "there are additional, undisclosed conditions on warranty cov-", "paragraph_id": "para_434" }, { "text": "erage or that the disclosed conditions are unclear. A", "paragraph_id": "para_435" }, { "text": "No. 24-2111 15", "paragraph_id": "para_436" }, { "text": "warrantor can always provide customers with more detail.", "paragraph_id": "para_437" }, { "text": "But detail comes at a cost. So long as the warranty clearly de-", "paragraph_id": "para_438" }, { "text": "scribes the scope of warranty coverage, a warrantor does not", "paragraph_id": "para_439" }, { "text": "need to exhaustively delineate every particular situation that", "paragraph_id": "para_440" }, { "text": "falls outside the scope of the warranty. See Bailey v. Monaco", "paragraph_id": "para_441" }, { "text": "Coach Corp., 350 F. Supp. 2d 1036, 1041–42 (N.D. Ga. 2004),", "paragraph_id": "para_442" }, { "text": "aff’d, 168 F. App’x 893 (11th Cir. 2006) (“Requiring a warran-", "paragraph_id": "para_443" }, { "text": "tor to set forth an exhaustive list, from bumper to bumper, of", "paragraph_id": "para_444" }, { "text": "every included and excluded item would prove unduly bur-", "paragraph_id": "para_445" }, { "text": "densome and unnecessary for a clear description of the scope", "paragraph_id": "para_446" }, { "text": "of warranty coverage.”). Absent specific allegations about", "paragraph_id": "para_447" }, { "text": "what warranty terms are unclear or undisclosed, Heymer can-", "paragraph_id": "para_448" }, { "text": "not state a claim merely by alleging that Harley-Davidson di-", "paragraph_id": "para_449" }, { "text": "rects customers to speak with a dealer if they have questions", "paragraph_id": "para_450" }, { "text": "about their warranty.", "paragraph_id": "para_451" }, { "text": "Heymer only points to two other statements he says are", "paragraph_id": "para_452" }, { "text": "unclear: “The use of parts and service procedures other than", "paragraph_id": "para_453" }, { "text": "Harley-Davidson approved parts and service procedures", "paragraph_id": "para_454" }, { "text": "may void the limited warranty.” And: “Some countries, states", "paragraph_id": "para_455" }, { "text": "or other locations may require all regular maintenance and", "paragraph_id": "para_456" }, { "text": "service work to be done by an authorized Harley-Davidson", "paragraph_id": "para_457" }, { "text": "dealer for your warranty to remain in effect. Check with your", "paragraph_id": "para_458" }, { "text": "local Harley-Davidson dealer for local requirements.” But, as", "paragraph_id": "para_459" }, { "text": "we explained above, these are cautionary statements that are", "paragraph_id": "para_460" }, { "text": "neither in the limited warranty nor purport to modify or sup-", "paragraph_id": "para_461" }, { "text": "plement its terms. Moreover, the Warranty Act does not task", "paragraph_id": "para_462" }, { "text": "warrantors with keeping their customers abreast of local re-", "paragraph_id": "para_463" }, { "text": "quirements that may affect the scope of warranty coverage.", "paragraph_id": "para_464" }, { "text": "The FTC’s own regulations instruct warrantors to provide", "paragraph_id": "para_465" }, { "text": "customers with similarly broad warnings concerning varia-", "paragraph_id": "para_466" }, { "text": "tions in state law. See 16 C.F.R. § 701.3(a)(7) (“Some States do", "paragraph_id": "para_467" }, { "text": "not allow limitations on how long an implied warranty lasts,", "paragraph_id": "para_468" }, { "text": "16 No. 24-2111", "paragraph_id": "para_469" }, { "text": "so the above limitation may not apply to you.”); id.", "paragraph_id": "para_470" }, { "text": "§ 701.3(a)(8) (“Some States do not allow the exclusion or limi-", "paragraph_id": "para_471" }, { "text": "tation of incidental or consequential damages, so the above", "paragraph_id": "para_472" }, { "text": "limitation or exclusion may not apply to you.”); id.", "paragraph_id": "para_473" }, { "text": "§ 701.3(a)(9) (“This warranty gives you specific legal rights,", "paragraph_id": "para_474" }, { "text": "and you may also have other rights which vary from State to", "paragraph_id": "para_475" }, { "text": "State.”).", "paragraph_id": "para_476" }, { "text": "C", "paragraph_id": "para_477" }, { "text": "Heymer’s final Warranty Act claim is brought under", "paragraph_id": "para_478" }, { "text": "§ 2302(b). That provision, and its accompanying regulation,", "paragraph_id": "para_479" }, { "text": "requires that the terms of a warranty be made available to con-", "paragraph_id": "para_480" }, { "text": "sumers prior to the sale of the product. 15 U.S.C. § 2302(b); 16", "paragraph_id": "para_481" }, { "text": "C.F.R. § 702.3(b). There are multiple ways to satisfy this pre-", "paragraph_id": "para_482" }, { "text": "sale availability rule. A warrantor can, for example, make the", "paragraph_id": "para_483" }, { "text": "terms of the warranty available on its website, include a copy", "paragraph_id": "para_484" }, { "text": "of the written warranty with every warranted product, or pro-", "paragraph_id": "para_485" }, { "text": "vide a sign, notice, or other attachment that discloses the text", "paragraph_id": "para_486" }, { "text": "of the warranty. Id.", "paragraph_id": "para_487" }, { "text": "In his complaint, Heymer alleges that Harley-Davidson", "paragraph_id": "para_488" }, { "text": "does not provide signs to its authorized dealers. But he", "paragraph_id": "para_489" }, { "text": "doesn’t allege that the limited warranty is unavailable on", "paragraph_id": "para_490" }, { "text": "Harley-Davidson’s website or that the company fails to", "paragraph_id": "para_491" }, { "text": "include a copy of the limited warranty with every warranted", "paragraph_id": "para_492" }, { "text": "product. Because there are several ways to comply with the", "paragraph_id": "para_493" }, { "text": "pre-sale availability rule, Heymer cannot state a claim simply", "paragraph_id": "para_494" }, { "text": "by alleging that Harley-Davidson has failed to pursue one of", "paragraph_id": "para_495" }, { "text": "them. And while Heymer says we must accept as true his", "paragraph_id": "para_496" }, { "text": "allegation that the terms of the warranty were not provided", "paragraph_id": "para_497" }, { "text": "in accordance with § 702.3(b), that is precisely the kind of", "paragraph_id": "para_498" }, { "text": "legal conclusion we disregard at the motion to dismiss stage.", "paragraph_id": "para_499" }, { "text": "No. 24-2111 17", "paragraph_id": "para_500" }, { "text": "Cielak v. Nicolet Union High Sch. Dist., 112 F.4th 472, 475 (7th", "paragraph_id": "para_501" }, { "text": "Cir. 2024).", "paragraph_id": "para_502" }, { "text": "For the foregoing reasons, we affirm the dismissal of Hey-", "paragraph_id": "para_503" }, { "text": "mer’s Warranty Act claims.", "paragraph_id": "para_504" }, { "text": "IV", "paragraph_id": "para_505" }, { "text": "Next, we turn to Heymer’s state law antitrust claims. He", "paragraph_id": "para_506" }, { "text": "raises three types of claims: a tying claim, an attempted mo-", "paragraph_id": "para_507" }, { "text": "nopolization claim, and a Kodak-style lock-in claim. Although", "paragraph_id": "para_508" }, { "text": "these claims are not brought under the Sherman Antitrust Act,", "paragraph_id": "para_509" }, { "text": "15 U.S.C. § 1 et seq., the parties agree that the relevant state", "paragraph_id": "para_510" }, { "text": "antitrust laws are generally interchangeable with federal law", "paragraph_id": "para_511" }, { "text": "and have relied principally on federal case law in their briefs.", "paragraph_id": "para_512" }, { "text": "Accordingly, we assume without deciding that the federal", "paragraph_id": "para_513" }, { "text": "standard applies.", "paragraph_id": "para_514" }, { "text": "A", "paragraph_id": "para_515" }, { "text": "Heymer first claims that the statements in the owner’s", "paragraph_id": "para_516" }, { "text": "manual create an anticompetitive tie by conditioning war-", "paragraph_id": "para_517" }, { "text": "ranty coverage on the exclusive use of Harley-Davidson parts.", "paragraph_id": "para_518" }, { "text": "A tie is anticompetitive when the seller exploits “its control", "paragraph_id": "para_519" }, { "text": "over the tying product to force the buyer into the purchase of", "paragraph_id": "para_520" }, { "text": "a tied product that the buyer … might have preferred to pur-", "paragraph_id": "para_521" }, { "text": "chase elsewhere on different terms.” Jefferson Par. Hosp. Dist.", "paragraph_id": "para_522" }, { "text": "No. 2 v. Hyde, 466 U.S. 2, 12 (1984). To state a claim, a plaintiff", "paragraph_id": "para_523" }, { "text": "must establish that (1) a tying arrangement exists between", "paragraph_id": "para_524" }, { "text": "two separate products or services; (2) “the defendant has suf-", "paragraph_id": "para_525" }, { "text": "ficient economic power in the tying product market to restrain", "paragraph_id": "para_526" }, { "text": "free competition in the tied product market”; (3) “the tie af-", "paragraph_id": "para_527" }, { "text": "fects a not-insubstantial amount of interstate commerce in the", "paragraph_id": "para_528" }, { "text": "tied product”; and (4) “the defendant has some economic", "paragraph_id": "para_529" }, { "text": "18 No. 24-2111", "paragraph_id": "para_530" }, { "text": "interest in the sales of the tied product.” Siva v. Am. Bd. of Ra-", "paragraph_id": "para_531" }, { "text": "diology, 38 F.4th 569, 574 (7th Cir. 2022) (quotations omitted).", "paragraph_id": "para_532" }, { "text": "Here, we do not need to determine whether a tying", "paragraph_id": "para_533" }, { "text": "arrangement exists because Heymer has not adequately", "paragraph_id": "para_534" }, { "text": "pleaded the second element of a tying claim. According to the", "paragraph_id": "para_535" }, { "text": "complaint, Harley-Davidson captures one-fifth of the market", "paragraph_id": "para_536" }, { "text": "for large, roadgoing motorcycles sold in the United States.", "paragraph_id": "para_537" }, { "text": "That is not a sufficient market share to plausibly infer", "paragraph_id": "para_538" }, { "text": "economic power in the tying market. Will v. Comprehensive", "paragraph_id": "para_539" }, { "text": "Acct. Corp., 776 F.2d 665, 672 (7th Cir. 1985) (citing Jefferson", "paragraph_id": "para_540" }, { "text": "Par., 466 U.S. at 26–31 & n.43). Heymer does not argue", "paragraph_id": "para_541" }, { "text": "otherwise. Instead, he alleges that the relevant tying product", "paragraph_id": "para_542" }, { "text": "market is limited to motorcycles manufactured by American", "paragraph_id": "para_543" }, { "text": "brands. Harley-Davidson would have a significantly larger", "paragraph_id": "para_544" }, { "text": "market share—at least 80 percent—under Heymer’s proposed", "paragraph_id": "para_545" }, { "text": "market definition. But such a narrowly defined market is", "paragraph_id": "para_546" }, { "text": "implausible.", "paragraph_id": "para_547" }, { "text": "A product market is generally “composed of products that", "paragraph_id": "para_548" }, { "text": "have reasonable interchangeability for the purposes for which", "paragraph_id": "para_549" }, { "text": "they are produced.” United States v. E. I. du Pont de Nemours &", "paragraph_id": "para_550" }, { "text": "Co., 351 U.S. 377, 404 (1956). “However, within this broad", "paragraph_id": "para_551" }, { "text": "market, well-defined submarkets may exist which, in them-", "paragraph_id": "para_552" }, { "text": "selves, constitute product markets for antitrust purposes.”", "paragraph_id": "para_553" }, { "text": "Brown Shoe Co. v. United States, 370 U.S. 294, 325 (1962). There-", "paragraph_id": "para_554" }, { "text": "fore, courts must consider several other factors when deter-", "paragraph_id": "para_555" }, { "text": "mining how to properly define the relevant product market,", "paragraph_id": "para_556" }, { "text": "including “such practical indicia as industry or public recog-", "paragraph_id": "para_557" }, { "text": "nition of the submarket as a separate economic entity, the", "paragraph_id": "para_558" }, { "text": "product’s peculiar characteristics and uses, unique produc-", "paragraph_id": "para_559" }, { "text": "tion facilities, distinct customers, distinct prices, sensitivity to", "paragraph_id": "para_560" }, { "text": "price changes, and specialized vendors.” Id.", "paragraph_id": "para_561" }, { "text": "No. 24-2111 19", "paragraph_id": "para_562" }, { "text": "These practical indicia are largely absent from the", "paragraph_id": "para_563" }, { "text": "complaint. Heymer does not allege American-made", "paragraph_id": "para_564" }, { "text": "motorcycles have peculiar characteristics and uses, unique", "paragraph_id": "para_565" }, { "text": "production facilities, or specialized vendors. And the mere", "paragraph_id": "para_566" }, { "text": "existence of American Iron Magazine, a publication that", "paragraph_id": "para_567" }, { "text": "covered American-made motorcycles for 30 years, provides", "paragraph_id": "para_568" }, { "text": "scant support for industry or public recognition that", "paragraph_id": "para_569" }, { "text": "American-made motorcycles are effectively a separate", "paragraph_id": "para_570" }, { "text": "economic entity. While Heymer alleges that Harley-Davidson", "paragraph_id": "para_571" }, { "text": "motorcycles are generally more expensive than other", "paragraph_id": "para_572" }, { "text": "motorcycles, higher prices do not, by themselves, indicate a", "paragraph_id": "para_573" }, { "text": "cognizable submarket. Id. at 326; duPont, 351 U.S. at 400–02.", "paragraph_id": "para_574" }, { "text": "Instead, Heymer’s position hinges on distinct customers.", "paragraph_id": "para_575" }, { "text": "According to the complaint, some consumers will only", "paragraph_id": "para_576" }, { "text": "purchase American-made motorcycles because, for them,", "paragraph_id": "para_577" }, { "text": "motorcycles serve as a means to celebrate their national", "paragraph_id": "para_578" }, { "text": "heritage and express their patriotism. But without more, these", "paragraph_id": "para_579" }, { "text": "allegations do not warrant limiting the relevant market to", "paragraph_id": "para_580" }, { "text": "American-made motorcycles.", "paragraph_id": "para_581" }, { "text": "To start with, the allegations in the complaint are more", "paragraph_id": "para_582" }, { "text": "consistent with a single-brand submarket than an American-", "paragraph_id": "para_583" }, { "text": "made submarket. For example, Heymer only alleges that", "paragraph_id": "para_584" }, { "text": "Harley-Davidson motorcycles are more expensive than other", "paragraph_id": "para_585" }, { "text": "brands, not that American-made motorcycles as a whole are", "paragraph_id": "para_586" }, { "text": "more expensive. Although he acknowledges that there are", "paragraph_id": "para_587" }, { "text": "other American-made motorcycles on the market, Heymer", "paragraph_id": "para_588" }, { "text": "says there are no close substitutes to Harley-Davidson for", "paragraph_id": "para_589" }, { "text": "many riders. The consumer studies cited in the complaint", "paragraph_id": "para_590" }, { "text": "similarly focus on the distinctive subgroup of motorcycle", "paragraph_id": "para_591" }, { "text": "enthusiasts that are bound by a shared commitment to", "paragraph_id": "para_592" }, { "text": "Harley-Davidson. And to the extent riders use their", "paragraph_id": "para_593" }, { "text": "motorcycles to celebrate their American heritage, Heymer", "paragraph_id": "para_594" }, { "text": "20 No. 24-2111", "paragraph_id": "para_595" }, { "text": "says it is through Harley-Davidson-affiliated groups", "paragraph_id": "para_596" }, { "text": "specifically. These allegations are all indicative of customer", "paragraph_id": "para_597" }, { "text": "loyalty to the Harley-Davidson brand, not American-made", "paragraph_id": "para_598" }, { "text": "motorcycles more generally.", "paragraph_id": "para_599" }, { "text": "Consumer preference for a particular brand is not", "paragraph_id": "para_600" }, { "text": "sufficient to plausibly allege a single-brand market absent", "paragraph_id": "para_601" }, { "text": "significant differences in product design or quality. 2B Philip", "paragraph_id": "para_602" }, { "text": "E. Areeda & Herbert Hovenkamp, Antitrust Law: An Analysis", "paragraph_id": "para_603" }, { "text": "of Antitrust Principles and Their Application ¶ 563d (5th ed.", "paragraph_id": "para_604" }, { "text": "2025) (explaining the presumption against single-brand", "paragraph_id": "para_605" }, { "text": "markets); Todd v. Exxon Corp., 275 F.3d 191, 200 (2d Cir. 2001)", "paragraph_id": "para_606" }, { "text": "(dismissal on the pleadings appropriate to resolve “failed", "paragraph_id": "para_607" }, { "text": "attempts to limit a product market to a single brand”). In", "paragraph_id": "para_608" }, { "text": "product-differentiated markets, customers will often have", "paragraph_id": "para_609" }, { "text": "idiosyncratic preferences that align them more closely with a", "paragraph_id": "para_610" }, { "text": "particular brand. “[T]his kind of preference does not translate", "paragraph_id": "para_611" }, { "text": "into the kind of economic power that antitrust law aims to", "paragraph_id": "para_612" }, { "text": "mitigate.” SMS Sys. Maint. Servs., Inc. v. Digital Equip. Corp.,", "paragraph_id": "para_613" }, { "text": "188 F.3d 11, 23 (1st Cir. 1999); see also duPont, 351 U.S. at 392–", "paragraph_id": "para_614" }, { "text": "93; Elliott v. United Ctr., 126 F.3d 1003, 1005 (7th Cir. 1997);", "paragraph_id": "para_615" }, { "text": "Tunis Bros. Co. v. Ford Motor Co., 952 F.2d 715, 723–24 (3d Cir.", "paragraph_id": "para_616" }, { "text": "1991) (collecting cases). Absent something more concrete than", "paragraph_id": "para_617" }, { "text": "mere brand preference, Heymer cannot plausibly allege a", "paragraph_id": "para_618" }, { "text": "single-brand product market.", "paragraph_id": "para_619" }, { "text": "Even setting aside the brand-specific allegations in the", "paragraph_id": "para_620" }, { "text": "complaint, Heymer has not plausibly alleged the existence of", "paragraph_id": "para_621" }, { "text": "an American-made submarket. Support for this submarket", "paragraph_id": "para_622" }, { "text": "largely stems from Harley-Davidson’s own marketing efforts", "paragraph_id": "para_623" }, { "text": "to associate its brand with American identity and", "paragraph_id": "para_624" }, { "text": "iconography. As Heymer acknowledges, the company began", "paragraph_id": "para_625" }, { "text": "this all-American branding effort in the 1980s to distinguish", "paragraph_id": "para_626" }, { "text": "No. 24-2111 21", "paragraph_id": "para_627" }, { "text": "itself from Japanese brands that were becoming increasingly", "paragraph_id": "para_628" }, { "text": "popular in the United States. The complaint even refers to", "paragraph_id": "para_629" }, { "text": "these Japanese brands as Harley-Davidson’s “nearest", "paragraph_id": "para_630" }, { "text": "competitors” in terms of market share. Rather than", "paragraph_id": "para_631" }, { "text": "supporting an American-made submarket, we view Harley-", "paragraph_id": "para_632" }, { "text": "Davidson’s vigorous marketing efforts as indicative of", "paragraph_id": "para_633" }, { "text": "interbrand competition.", "paragraph_id": "para_634" }, { "text": "We are aware of only one precedential decision squarely", "paragraph_id": "para_635" }, { "text": "holding that the relevant market was limited by a product’s", "paragraph_id": "para_636" }, { "text": "place of manufacture. In McWane, Inc. v. FTC, 783 F.3d 814", "paragraph_id": "para_637" }, { "text": "(11th Cir. 2015), the Eleventh Circuit found sufficient evidence", "paragraph_id": "para_638" }, { "text": "that domestically manufactured pipe fittings comprised the", "paragraph_id": "para_639" }, { "text": "relevant market even though they were functionally identical", "paragraph_id": "para_640" }, { "text": "to imported pipe fittings. Id. at 828–30. But there, the submar-", "paragraph_id": "para_641" }, { "text": "ket for domestically manufactured pipe fittings was limited to", "paragraph_id": "para_642" }, { "text": "an identifiable, discrete segment of the market: customers", "paragraph_id": "para_643" }, { "text": "with “domestic-only” project specifications. Id. at 829. Various", "paragraph_id": "para_644" }, { "text": "laws and end-user preferences precluded the use of imported", "paragraph_id": "para_645" }, { "text": "pipe fittings in these projects. Id. As a result, McWane was able", "paragraph_id": "para_646" }, { "text": "to charge significantly more to these customers than it could", "paragraph_id": "para_647" }, { "text": "to customers with “open” project specifications. Id.", "paragraph_id": "para_648" }, { "text": "Although Heymer also claims that some riders will only", "paragraph_id": "para_649" }, { "text": "purchase American-made motorcycles, nothing in the", "paragraph_id": "para_650" }, { "text": "complaint suggests they comprise an identifiable, discrete", "paragraph_id": "para_651" }, { "text": "subset of consumers that can be similarly exploited via price", "paragraph_id": "para_652" }, { "text": "discrimination. See Areeda & Hovenkamp, supra, ¶ 563d (“A", "paragraph_id": "para_653" }, { "text": "single brand or differentiated product within a product class", "paragraph_id": "para_654" }, { "text": "is presumptively not a separate market … unless a substantial", "paragraph_id": "para_655" }, { "text": "group of customers can be significantly exploited via price", "paragraph_id": "para_656" }, { "text": "discrimination.”). Unless Heymer is suggesting that every", "paragraph_id": "para_657" }, { "text": "Harley-Davidson customer would only purchase American-", "paragraph_id": "para_658" }, { "text": "22 No. 24-2111", "paragraph_id": "para_659" }, { "text": "made motorcycles, the fact that Harley-Davidson motorcycles", "paragraph_id": "para_660" }, { "text": "are generally more expensive than other brands is not enough", "paragraph_id": "para_661" }, { "text": "on its own to show price discrimination. That is particularly", "paragraph_id": "para_662" }, { "text": "true where, like here, there is no allegation that other", "paragraph_id": "para_663" }, { "text": "American-made motorcycles are also more expensive than", "paragraph_id": "para_664" }, { "text": "foreign-made motorcycles.", "paragraph_id": "para_665" }, { "text": "B", "paragraph_id": "para_666" }, { "text": "Next, Heymer claims that Harley-Davidson impermissi-", "paragraph_id": "para_667" }, { "text": "bly used its alleged monopoly power in the tying market to", "paragraph_id": "para_668" }, { "text": "attempt to monopolize the aftermarket in parts compatible", "paragraph_id": "para_669" }, { "text": "with Harley-Davidson motorcycles. To make out an at-", "paragraph_id": "para_670" }, { "text": "tempted monopolization claim, a plaintiff must show “(1) that", "paragraph_id": "para_671" }, { "text": "the defendant has engaged in predatory or anticompetitive", "paragraph_id": "para_672" }, { "text": "conduct with (2) a specific intent to monopolize and (3) a dan-", "paragraph_id": "para_673" }, { "text": "gerous probability of achieving monopoly power.” Spectrum", "paragraph_id": "para_674" }, { "text": "Sports, Inc. v. McQuillan, 506 U.S. 447, 456 (1993).", "paragraph_id": "para_675" }, { "text": "As we discussed in Part IV.A, Harley-Davidson does not", "paragraph_id": "para_676" }, { "text": "have market power in the tying market, so Heymer cannot", "paragraph_id": "para_677" }, { "text": "plausibly allege that the company engaged in anticompetitive", "paragraph_id": "para_678" }, { "text": "conduct. See Jefferson Par., 466 U.S. at 11–14 (explaining that", "paragraph_id": "para_679" }, { "text": "tying is not anticompetitive conduct absent market power in", "paragraph_id": "para_680" }, { "text": "the tying market); see also Epic Games, Inc. v. Apple, Inc., 67", "paragraph_id": "para_681" }, { "text": "F.4th 946, 998 (9th Cir. 2023) (“Where, like here, the plaintiff", "paragraph_id": "para_682" }, { "text": "challenges the same conduct pursuant to Sections 1 and 2, we", "paragraph_id": "para_683" }, { "text": "can review claims under each section simultaneously.”) (quo-", "paragraph_id": "para_684" }, { "text": "tation omitted).", "paragraph_id": "para_685" }, { "text": "Further, Heymer has not shown a dangerous probability", "paragraph_id": "para_686" }, { "text": "of achieving monopoly power. According to the complaint,", "paragraph_id": "para_687" }, { "text": "there is a “vast” and “robust” aftermarket for compatible", "paragraph_id": "para_688" }, { "text": "parts that offers consumers a wide variety of options, even", "paragraph_id": "para_689" }, { "text": "No. 24-2111 23", "paragraph_id": "para_690" }, { "text": "excluding the parts manufactured by Harley-Davidson. For", "paragraph_id": "para_691" }, { "text": "example, the complaint identifies nearly a dozen brands the", "paragraph_id": "para_692" }, { "text": "company competes with and suggests there are many more.", "paragraph_id": "para_693" }, { "text": "The aftermarket is as large as it is, Heymer says, because", "paragraph_id": "para_694" }, { "text": "riders are willing to keep older Harley-Davidson motorcycles", "paragraph_id": "para_695" }, { "text": "on the road for generations. Compared to the longevity of", "paragraph_id": "para_696" }, { "text": "Harley-Davidson motorcycles, the limited warranty lasts no", "paragraph_id": "para_697" }, { "text": "longer than the first two years of a motorcycle’s useful life.", "paragraph_id": "para_698" }, { "text": "And even then, it only forecloses competition for parts that", "paragraph_id": "para_699" }, { "text": "would not be covered by the limited warranty and for riders", "paragraph_id": "para_700" }, { "text": "that seek to keep their warranty intact. Heymer fails to explain", "paragraph_id": "para_701" }, { "text": "how such a short-lived restraint on trade creates a dangerous", "paragraph_id": "para_702" }, { "text": "probability of achieving monopoly power in an aftermarket", "paragraph_id": "para_703" }, { "text": "he concedes is vast, robust, and offers consumers a wide", "paragraph_id": "para_704" }, { "text": "variety of options.", "paragraph_id": "para_705" }, { "text": "C", "paragraph_id": "para_706" }, { "text": "Finally, Heymer raises a Kodak-style lock-in claim. He says", "paragraph_id": "para_707" }, { "text": "he was unaware of the alleged warranty tie when he pur-", "paragraph_id": "para_708" }, { "text": "chased his motorcycle, at which point he had no choice but to", "paragraph_id": "para_709" }, { "text": "purchase higher-priced Harley-Davidson parts if he wanted", "paragraph_id": "para_710" }, { "text": "to keep his warranty intact. But Heymer cannot plausibly al-", "paragraph_id": "para_711" }, { "text": "lege a lock-in claim when the limited warranty was available", "paragraph_id": "para_712" }, { "text": "to him at the time he purchased his motorcycle.", "paragraph_id": "para_713" }, { "text": "The Supreme Court addressed the issue of aftermarket", "paragraph_id": "para_714" }, { "text": "lock ins in Eastman Kodak Co. v. Image Technical Services, Inc.,", "paragraph_id": "para_715" }, { "text": "504 U.S. 451 (1992). Kodak sold copiers that could be serviced", "paragraph_id": "para_716" }, { "text": "either by the company or by one of several independent ser-", "paragraph_id": "para_717" }, { "text": "vice organizations. Id. at 456–58. But after Kodak had sold a", "paragraph_id": "para_718" }, { "text": "substantial number of copiers, it began limiting the availabil-", "paragraph_id": "para_719" }, { "text": "ity of parts to independent service organizations. Id. at 458.", "paragraph_id": "para_720" }, { "text": "This change in policy pushed many of them out of business", "paragraph_id": "para_721" }, { "text": "24 No. 24-2111", "paragraph_id": "para_722" }, { "text": "and forced customers to switch to Kodak for servicing. Id. De-", "paragraph_id": "para_723" }, { "text": "spite its success in restraining competition, Kodak argued that", "paragraph_id": "para_724" }, { "text": "it could not exercise market power in the aftermarket for parts", "paragraph_id": "para_725" }, { "text": "or services because any increase in prices would lead to a cor-", "paragraph_id": "para_726" }, { "text": "responding loss in profits from lower copier sales. Id. at 465–", "paragraph_id": "para_727" }, { "text": "66. The Court rejected Kodak’s argument, reasoning that the", "paragraph_id": "para_728" }, { "text": "company was still able to take advantage of its existing cus-", "paragraph_id": "para_729" }, { "text": "tomers’ sunk costs. Id. at 476–77. These customers had pur-", "paragraph_id": "para_730" }, { "text": "chased their copiers before they knew they would be locked", "paragraph_id": "para_731" }, { "text": "into Kodak service, and the copiers were too expensive to eas-", "paragraph_id": "para_732" }, { "text": "ily replace in response to higher-than-expected prices in the", "paragraph_id": "para_733" }, { "text": "aftermarket. Id.", "paragraph_id": "para_734" }, { "text": "Here, Heymer does not allege that Harley-Davidson", "paragraph_id": "para_735" }, { "text": "changed its warranty practices after he purchased his motor-", "paragraph_id": "para_736" }, { "text": "cycle. Rather, Heymer says he was told he would lose cover-", "paragraph_id": "para_737" }, { "text": "age if he used non-Harley-Davidson parts by the limited war-", "paragraph_id": "para_738" }, { "text": "ranty documents themselves, which he received when he pur-", "paragraph_id": "para_739" }, { "text": "chased his motorcycle. As discussed in Part III.C, Heymer", "paragraph_id": "para_740" }, { "text": "does not plausibly allege that he couldn’t access the terms of", "paragraph_id": "para_741" }, { "text": "the limited warranty before he purchased his motorcycle. In", "paragraph_id": "para_742" }, { "text": "fact, he appears to acknowledge—both in the complaint and", "paragraph_id": "para_743" }, { "text": "in his briefs on appeal—that the terms of the limited warranty", "paragraph_id": "para_744" }, { "text": "are available on Harley-Davidson’s website. Like we ex-", "paragraph_id": "para_745" }, { "text": "plained in Digital Equipment Corp. v. Uniq Digital Technologies,", "paragraph_id": "para_746" }, { "text": "Inc., 73 F.3d 756 (7th Cir. 1996):", "paragraph_id": "para_747" }, { "text": "The Court did not doubt in Kodak that if spare", "paragraph_id": "para_748" }, { "text": "parts had been bundled with Kodak’s copiers", "paragraph_id": "para_749" }, { "text": "from the outset, or Kodak had informed cus-", "paragraph_id": "para_750" }, { "text": "tomers about its policies before they bought its", "paragraph_id": "para_751" }, { "text": "machines, purchasers could have shopped", "paragraph_id": "para_752" }, { "text": "around for competitive life-cycle prices. The", "paragraph_id": "para_753" }, { "text": "No. 24-2111 25", "paragraph_id": "para_754" }, { "text": "material dispute that called for a trial was", "paragraph_id": "para_755" }, { "text": "whether the change in policy enabled Kodak to", "paragraph_id": "para_756" }, { "text": "extract supra-competitive prices from custom-", "paragraph_id": "para_757" }, { "text": "ers who had already purchased its machines.", "paragraph_id": "para_758" }, { "text": "Id. at 763. Unlike the customers in Kodak, then, Heymer could", "paragraph_id": "para_759" }, { "text": "have factored the costs of any alleged tie into his purchasing", "paragraph_id": "para_760" }, { "text": "decision. See Queen City Pizza, Inc. v. Domino’s Pizza, Inc., 124", "paragraph_id": "para_761" }, { "text": "F.3d 430, 440 (3d Cir. 1997); Wampler v. Sw. Bell Tel. Co., 597", "paragraph_id": "para_762" }, { "text": "F.3d 741, 745 (5th Cir. 2010); Newcal Indus., Inc. v. Ikon Off. Sol.,", "paragraph_id": "para_763" }, { "text": "513 F.3d 1038, 1048 (9th Cir. 2008).", "paragraph_id": "para_764" }, { "text": "Before concluding, we also note that the switching costs", "paragraph_id": "para_765" }, { "text": "here are much less substantial than they were in Kodak. Kodak", "paragraph_id": "para_766" }, { "text": "customers would have had to purchase an entirely new copier", "paragraph_id": "para_767" }, { "text": "if they wanted to avoid using Kodak parts and servicing. If", "paragraph_id": "para_768" }, { "text": "Heymer wants to avoid using Harley-Davidson parts, the", "paragraph_id": "para_769" }, { "text": "only cost to him would be forgoing the remainder of his war-", "paragraph_id": "para_770" }, { "text": "ranty coverage, which lasts no longer than two years anyway.", "paragraph_id": "para_771" }, { "text": "We do not think these are the kind of switching costs the", "paragraph_id": "para_772" }, { "text": "Court was referring to in Kodak.", "paragraph_id": "para_773" }, { "text": "For the foregoing reasons, Heymer has failed to plausibly", "paragraph_id": "para_774" }, { "text": "state an antitrust claim.", "paragraph_id": "para_775" }, { "text": "V", "paragraph_id": "para_776" }, { "text": "Heymer raises several other state law claims involving", "paragraph_id": "para_777" }, { "text": "fraud and unjust enrichment. These claims are based on the", "paragraph_id": "para_778" }, { "text": "same anticompetitive conduct as his antitrust claims, and", "paragraph_id": "para_779" }, { "text": "Heymer makes no argument on appeal that they should", "paragraph_id": "para_780" }, { "text": "26 No. 24-2111", "paragraph_id": "para_781" }, { "text": "survive independently of those claims.2 Because the district", "paragraph_id": "para_782" }, { "text": "court did not err in dismissing the antitrust claims, it did not", "paragraph_id": "para_783" }, { "text": "err in dismissing these claims either.", "paragraph_id": "para_784" }, { "text": "AFFIRMED", "paragraph_id": "para_785" }, { "text": "2 In a different section of his brief, Heymer does suggest that one of", "paragraph_id": "para_786" }, { "text": "his state law claims may be independently viable. But because Heymer", "paragraph_id": "para_787" }, { "text": "failed to adequately develop this argument both on appeal and in the dis-", "paragraph_id": "para_788" }, { "text": "trict court, it is waived. Schaefer v. Universal Scaffolding & Equip., LLC, 839", "paragraph_id": "para_789" }, { "text": "F.3d 599, 607 (7th Cir. 2016).", "paragraph_id": "para_790" }, { "text": "No. 24-2111 27", "paragraph_id": "para_791" }, { "text": "LEE, Circuit Judge, dissenting in part and concurring in", "paragraph_id": "para_792" }, { "text": "part. I join much of the majority’s opinion. First, I agree with", "paragraph_id": "para_793" }, { "text": "my colleagues that the district court’s dismissal of Plaintiffs’", "paragraph_id": "para_794" }, { "text": "claim under the Magnuson-Moss Warranty Act’s disclosure", "paragraph_id": "para_795" }, { "text": "requirement, 15 U.S.C. § 2302(a), should be affirmed. The", "paragraph_id": "para_796" }, { "text": "claim should be dismissed to the extent that it is is based on", "paragraph_id": "para_797" }, { "text": "the need to contact Harley-Davidson authorized dealers to", "paragraph_id": "para_798" }, { "text": "flesh out how the warranty restrictions described in the war-", "paragraph_id": "para_799" }, { "text": "ranty might impact their individual situations. As the major-", "paragraph_id": "para_800" }, { "text": "ity points out, because Plaintiffs do not identify what infor-", "paragraph_id": "para_801" }, { "text": "mation was not disclosed, we cannot determine whether", "paragraph_id": "para_802" }, { "text": "Plaintiffs plausibly alleged that the nondisclosures affected", "paragraph_id": "para_803" }, { "text": "the warranty (if at all).", "paragraph_id": "para_804" }, { "text": "Second, I agree that the district court’s dismissal of Plain-", "paragraph_id": "para_805" }, { "text": "tiffs’ claim under the Warranty Act’s pre-sale availability re-", "paragraph_id": "para_806" }, { "text": "quirement, 15 U.S.C. § 2302(b), should be affirmed for the rea-", "paragraph_id": "para_807" }, { "text": "sons the majority opinion explains.", "paragraph_id": "para_808" }, { "text": "Third, I agree that Plaintiffs have failed to state a claim that", "paragraph_id": "para_809" }, { "text": "Harley-Davidson violated state antitrust laws by attempting", "paragraph_id": "para_810" }, { "text": "to monopolize the market for Harley-Davidson aftermarket", "paragraph_id": "para_811" }, { "text": "parts. I do so, however, solely on the grounds that Plaintiffs", "paragraph_id": "para_812" }, { "text": "have failed to allege a dangerous probability of achieving mo-", "paragraph_id": "para_813" }, { "text": "nopoly power. (In my view, Plaintiffs have plausibly alleged", "paragraph_id": "para_814" }, { "text": "that Harley-Davidson has sufficient market power in the ty-", "paragraph_id": "para_815" }, { "text": "ing market for the reasons I discuss below.)", "paragraph_id": "para_816" }, { "text": "Lastly, I agree that Plaintiffs cannot make out a “Kodak-", "paragraph_id": "para_817" }, { "text": "style lock-in claim” (although I believe this claim is merely a", "paragraph_id": "para_818" }, { "text": "variation of a Sherman Act § 1 tying claim and not an inde-", "paragraph_id": "para_819" }, { "text": "pendent antitrust claim as Plaintiffs suggest).", "paragraph_id": "para_820" }, { "text": "28 No. 24-2111", "paragraph_id": "para_821" }, { "text": "I part with the majority opinion, however, in two signifi-", "paragraph_id": "para_822" }, { "text": "cant ways. First, I believe Plaintiffs have adequately alleged", "paragraph_id": "para_823" }, { "text": "that Harley-Davidson violated § 2302(c) of the Act, 15 U.S.C.", "paragraph_id": "para_824" }, { "text": "§ 2302(c), by conditioning (either expressly or impliedly) war-", "paragraph_id": "para_825" }, { "text": "ranty coverage for its motorcycles on a customer’s use of only", "paragraph_id": "para_826" }, { "text": "Harley-Davidson aftermarket parts (for simplicity’s sake, I", "paragraph_id": "para_827" }, { "text": "will refer to these as “HD parts”). Taking Plaintiffs’ well-", "paragraph_id": "para_828" }, { "text": "pleaded allegations as true—as we must at the pleading", "paragraph_id": "para_829" }, { "text": "stage—they plausibly assert that (1) Harley-Davidson ex-", "paragraph_id": "para_830" }, { "text": "pressly conditioned its warranty on the use of HD parts, as", "paragraph_id": "para_831" }, { "text": "evidenced by statements in the Owner’s Manual, and (2) al-", "paragraph_id": "para_832" }, { "text": "ternatively, to the extent this condition was not expressly", "paragraph_id": "para_833" }, { "text": "stated in the Owner’s Manual, the company imposed an im-", "paragraph_id": "para_834" }, { "text": "plied tie when the manual is considered in conjunction with", "paragraph_id": "para_835" }, { "text": "the real-world experience of Harley-Davidson customers.", "paragraph_id": "para_836" }, { "text": "Second, I believe that the complaint plausibly alleges an", "paragraph_id": "para_837" }, { "text": "antitrust product market comprising American-made, large", "paragraph_id": "para_838" }, { "text": "roadgoing motorcycles and that Harley-Davidson exercised", "paragraph_id": "para_839" }, { "text": "its market power in this market to tie warranty coverage to", "paragraph_id": "para_840" }, { "text": "the use of HD parts in violation of state antitrust statutes that", "paragraph_id": "para_841" }, { "text": "mirror § 1 of the Sherman Act, 15 U.S.C. § 1.", "paragraph_id": "para_842" }, { "text": "In rejecting these claims, the majority inverts the long-", "paragraph_id": "para_843" }, { "text": "established standard under Federal Rule of Civil Procedure", "paragraph_id": "para_844" }, { "text": "12(b)(6) and grants Harley-Davidson, rather than Plaintiffs,", "paragraph_id": "para_845" }, { "text": "the benefit of all reasonable factual inferences. For example, it", "paragraph_id": "para_846" }, { "text": "discounts express statements of condition in the Harley-", "paragraph_id": "para_847" }, { "text": "Davidson Owner’s Manual in favor of more ambiguous ones.", "paragraph_id": "para_848" }, { "text": "And it chooses to reject Plaintiffs’ plausible definition of the", "paragraph_id": "para_849" }, { "text": "applicable product market by recasting it as a “single-brand", "paragraph_id": "para_850" }, { "text": "market” (even though Plaintiffs do not allege such a market)", "paragraph_id": "para_851" }, { "text": "No. 24-2111 29", "paragraph_id": "para_852" }, { "text": "without the benefit of fact or expert discovery. For these", "paragraph_id": "para_853" }, { "text": "reasons as explained below, I respectfully dissent.", "paragraph_id": "para_854" }, { "text": "I", "paragraph_id": "para_855" }, { "text": "First, Plaintiffs have plausibly alleged a claim that Harley-", "paragraph_id": "para_856" }, { "text": "Davidson violated the Warranty Act’s anti-tying prohibition", "paragraph_id": "para_857" }, { "text": "in violation of § 2302(c). The Act prohibits a warrantor from", "paragraph_id": "para_858" }, { "text": "conditioning a warranty for a consumer product on the con-", "paragraph_id": "para_859" }, { "text": "sumer’s use of an article or a service which is identified by", "paragraph_id": "para_860" }, { "text": "brand, trade, or corporate name (unless provided without", "paragraph_id": "para_861" }, { "text": "charge). 15 U.S.C. § 2302(c).", "paragraph_id": "para_862" }, { "text": "Here, Plaintiffs allege that Harley-Davidson’s 2021", "paragraph_id": "para_863" }, { "text": "Owner’s Manual, which the complaint incorporates by refer-", "paragraph_id": "para_864" }, { "text": "ence, contains a limited two-year warranty. That warranty", "paragraph_id": "para_865" }, { "text": "guarantees “for any new 2021 Harley-Davidson motorcycle", "paragraph_id": "para_866" }, { "text": "that an authorized HD dealer will repair or replace without", "paragraph_id": "para_867" }, { "text": "charge any parts found under normal use to be defective in", "paragraph_id": "para_868" }, { "text": "factory materials or workmanship.”", "paragraph_id": "para_869" }, { "text": "As a condition of coverage, however, the warranty re-", "paragraph_id": "para_870" }, { "text": "quires the customer to follow the instructions in the Owner’s", "paragraph_id": "para_871" }, { "text": "Manual. For example, in the very beginning, the warranty", "paragraph_id": "para_872" }, { "text": "states: “As a condition of this warranty, you are responsible for", "paragraph_id": "para_873" }, { "text": "properly using, maintaining, and caring for your motorcycle", "paragraph_id": "para_874" }, { "text": "as outlined in your Owner Manual.” Likewise, the section of the", "paragraph_id": "para_875" }, { "text": "warranty entitled “Exclusions” provides: “This limited war-", "paragraph_id": "para_876" }, { "text": "ranty will not apply to any motorcycle … [w]hich has not", "paragraph_id": "para_877" }, { "text": "been operated or maintained as specified in the owner’s manual.”", "paragraph_id": "para_878" }, { "text": "This then leads us to the Owner’s Manual, which includes", "paragraph_id": "para_879" }, { "text": "a section entitled, “Warranties and Responsibilities.” This", "paragraph_id": "para_880" }, { "text": "section, in turn, has two subsections entitled “Warranty and", "paragraph_id": "para_881" }, { "text": "Maintenance” and “Keeping It All Harley-Davidson.” The", "paragraph_id": "para_882" }, { "text": "30 No. 24-2111", "paragraph_id": "para_883" }, { "text": "first lays out the following mandate: “Use only Harley-", "paragraph_id": "para_884" }, { "text": "Davidson approved parts and accessories that have been", "paragraph_id": "para_885" }, { "text": "designed, tested and approved for your model and model", "paragraph_id": "para_886" }, { "text": "year motorcycle.” The second subsection contains a similar", "paragraph_id": "para_887" }, { "text": "instruction to customers and expressly links the condition to", "paragraph_id": "para_888" }, { "text": "the warranty: “Insist that your authorized Harley-Davidson", "paragraph_id": "para_889" }, { "text": "dealer uses only genuine Harley-Davidson replacement parts", "paragraph_id": "para_890" }, { "text": "and accessories to keep your Harley-Davidson motorcycle and its", "paragraph_id": "para_891" }, { "text": "limited warranty intact.” Thus, read together, the warranty and", "paragraph_id": "para_892" }, { "text": "the Owner’s Manual passages it references expressly inform", "paragraph_id": "para_893" }, { "text": "consumers that Harley-Davidson will not honor the warranty", "paragraph_id": "para_894" }, { "text": "if the customer does not use HD parts.", "paragraph_id": "para_895" }, { "text": "What is more, according to Plaintiffs, this is what hap-", "paragraph_id": "para_896" }, { "text": "pened in the real world. Harley-Davidson dealers were deny-", "paragraph_id": "para_897" }, { "text": "ing warranty coverage, claiming that customers were using", "paragraph_id": "para_898" }, { "text": "unauthorized parts. Indeed, Plaintiffs allege, dealers were", "paragraph_id": "para_899" }, { "text": "economically incentivized to do so because non-warranty re-", "paragraph_id": "para_900" }, { "text": "pairs get reimbursed immediately, whereas dealers had to", "paragraph_id": "para_901" }, { "text": "“wait up to ninety days to be compensated” for warranty re-", "paragraph_id": "para_902" }, { "text": "pairs.", "paragraph_id": "para_903" }, { "text": "Rather than assuming the truth of these allegations and", "paragraph_id": "para_904" }, { "text": "drawing all reasonable inferences in Plaintiffs’ favor, the ma-", "paragraph_id": "para_905" }, { "text": "jority focuses on the portion of the Owner’s Manual that con-", "paragraph_id": "para_906" }, { "text": "tains softer, more ambiguous language: “The use of parts and", "paragraph_id": "para_907" }, { "text": "service procedures other than Harley-Davidson approved", "paragraph_id": "para_908" }, { "text": "parts and service procedures may void the limited warranty.”", "paragraph_id": "para_909" }, { "text": "Slip Op. at 10. Emphasizing the word “may,” the majority", "paragraph_id": "para_910" }, { "text": "casts these statements as “simply offer[ing] a general warning", "paragraph_id": "para_911" }, { "text": "to consumers that using unauthorized parts in their motorcy-", "paragraph_id": "para_912" }, { "text": "cles may void the warranty.” Id. at 11.", "paragraph_id": "para_913" }, { "text": "No. 24-2111 31", "paragraph_id": "para_914" }, { "text": "But this language cannot support the weight the majority", "paragraph_id": "para_915" }, { "text": "places on it. In fact, this sentence does not suggest in any way", "paragraph_id": "para_916" }, { "text": "that Harley-Davison did not condition its warranty on the use", "paragraph_id": "para_917" }, { "text": "of HD parts. Rather, its permissive language merely states", "paragraph_id": "para_918" }, { "text": "that Harley-Davidson could do this, and the previously dis-", "paragraph_id": "para_919" }, { "text": "cussed statements in the warranty and Owner’s Manual, as", "paragraph_id": "para_920" }, { "text": "well as additional allegations in the complaint, indicate that", "paragraph_id": "para_921" }, { "text": "Harley-Davidson did do this. These statements are not mutu-", "paragraph_id": "para_922" }, { "text": "ally exclusive. And, certainly, at the pleading stage, Plaintiffs", "paragraph_id": "para_923" }, { "text": "are entitled to the benefit of that inference. Thus, I believe that", "paragraph_id": "para_924" }, { "text": "Plaintiffs have sufficiently alleged an express tie to satisfy", "paragraph_id": "para_925" }, { "text": "their obligations under Rule 8 and Rule 12(b)(6).", "paragraph_id": "para_926" }, { "text": "In addition, Plaintiffs have adequately alleged, in the al-", "paragraph_id": "para_927" }, { "text": "ternative, that Harley-Davidson imposed an implied tie by in-", "paragraph_id": "para_928" }, { "text": "cluding language in the warranty and Owner’s Manual that", "paragraph_id": "para_929" }, { "text": "would lead a reasonable consumer to believe that he had to", "paragraph_id": "para_930" }, { "text": "use HD parts to maintain the warranty. On this, the majority", "paragraph_id": "para_931" }, { "text": "appears to agree, explaining that “the statements [Plaintiffs]", "paragraph_id": "para_932" }, { "text": "complain[] of are best understood as implied ties.” Slip Op. at", "paragraph_id": "para_933" }, { "text": "13. But, then, it pronounces that “the limited warranty clearly", "paragraph_id": "para_934" }, { "text": "disclaimed any ties (express or implied).” Id. I respectfully", "paragraph_id": "para_935" }, { "text": "disagree.", "paragraph_id": "para_936" }, { "text": "True, the warranty states that it does not cover “[d]efects", "paragraph_id": "para_937" }, { "text": "or damage to the motorcycle caused by alterations out of", "paragraph_id": "para_938" }, { "text": "Harley-Davidson’s factory specifications or caused by", "paragraph_id": "para_939" }, { "text": "alterations or use of parts or accessories not approved for the", "paragraph_id": "para_940" }, { "text": "make and model year of your motorcycle.” But, in my view,", "paragraph_id": "para_941" }, { "text": "this phrase does not do the work the majority would have it", "paragraph_id": "para_942" }, { "text": "do.", "paragraph_id": "para_943" }, { "text": "First, note that this statement excludes from warranty cov-", "paragraph_id": "para_944" }, { "text": "erage “[d]efects or damage … caused by” unapproved", "paragraph_id": "para_945" }, { "text": "32 No. 24-2111", "paragraph_id": "para_946" }, { "text": "alterations. I agree with the majority that such a condition", "paragraph_id": "para_947" }, { "text": "does not violate § 2302(c). But this is not what Plaintiffs allege.", "paragraph_id": "para_948" }, { "text": "Instead, their theory is that, under the limited warranty, any", "paragraph_id": "para_949" }, { "text": "use of non-HD parts—even those that are unrelated to the", "paragraph_id": "para_950" }, { "text": "damage the owners seek to remedy—precludes warranty", "paragraph_id": "para_951" }, { "text": "coverage.", "paragraph_id": "para_952" }, { "text": "Second, as noted previously, the warranty states from the", "paragraph_id": "para_953" }, { "text": "beginning that proper use and maintenance as outlined in the", "paragraph_id": "para_954" }, { "text": "Owner’s Manual is “a condition of this warranty.” And it does", "paragraph_id": "para_955" }, { "text": "so again in the exclusions section of the warranty. When read", "paragraph_id": "para_956" }, { "text": "alongside the language in the Owner’s Manual requiring use", "paragraph_id": "para_957" }, { "text": "of HD parts, “such warranty language … implies to a con-", "paragraph_id": "para_958" }, { "text": "sumer acting reasonably in the circumstances that warranty", "paragraph_id": "para_959" }, { "text": "coverage” is tied to HD parts. 16 C.F.R. § 700.10(c). See Anto-", "paragraph_id": "para_960" }, { "text": "nin Scalia & Bryan A. Garner, Reading Law: The Interpreta-", "paragraph_id": "para_961" }, { "text": "tion of Legal Texts 167 (2012) (“Context is a primary determi-", "paragraph_id": "para_962" }, { "text": "nant of meaning.”).", "paragraph_id": "para_963" }, { "text": "Finally, the majority is correct to say that “the interpreta-", "paragraph_id": "para_964" }, { "text": "tion of an unambiguous contract is a question of law.” Slip", "paragraph_id": "para_965" }, { "text": "Op. at 14. But, when we consider all of the relevant statements", "paragraph_id": "para_966" }, { "text": "in the warranty and Owner’s Manual, they at a minimum cre-", "paragraph_id": "para_967" }, { "text": "ate significant ambiguity as to what exactly the warranty re-", "paragraph_id": "para_968" }, { "text": "quires. And, when contract terms are ambiguous, we consider", "paragraph_id": "para_969" }, { "text": "extrinsic facts to determine the parties’ intent, including sub-", "paragraph_id": "para_970" }, { "text": "sequent performance. See 11 Williston on Contracts § 30:7 (4th", "paragraph_id": "para_971" }, { "text": "ed. 1990) (“When a written contract is ambiguous, its meaning", "paragraph_id": "para_972" }, { "text": "is a question of fact, requiring a determination of the intent of", "paragraph_id": "para_973" }, { "text": "parties in entering the contract.”) (footnote omitted); id.", "paragraph_id": "para_974" }, { "text": "§ 32:14 (“[T]he parties’ own practical interpretation of the", "paragraph_id": "para_975" }, { "text": "contract—how they actually acted, thereby giving meaning to", "paragraph_id": "para_976" }, { "text": "their contract during the course of performing it—can be an", "paragraph_id": "para_977" }, { "text": "No. 24-2111 33", "paragraph_id": "para_978" }, { "text": "important aid to the court.”) (footnote omitted). Such an in-", "paragraph_id": "para_979" }, { "text": "quiry is fact-intensive, typically requiring discovery. See, e.g.,", "paragraph_id": "para_980" }, { "text": "Newman v. Metro. Life Ins. Co., 885 F.3d 992, 1000 (7th Cir. 2018)", "paragraph_id": "para_981" }, { "text": "(denying motion to dismiss on contract claim and allowing", "paragraph_id": "para_982" }, { "text": "parties on remand to “introduce extrinsic evidence to sub-", "paragraph_id": "para_983" }, { "text": "stantiate their reading of the contract”).", "paragraph_id": "para_984" }, { "text": "After the facts come out, it is quite possible that Plaintiffs", "paragraph_id": "para_985" }, { "text": "may not be able to prove this claim. But, at the motion-to-", "paragraph_id": "para_986" }, { "text": "dismiss stage, we have to assume the facts as Plaintiffs have", "paragraph_id": "para_987" }, { "text": "alleged them. Viewed through this lens, Plaintiffs’ implied", "paragraph_id": "para_988" }, { "text": "tying claim falls neatly under § 2302(c).", "paragraph_id": "para_989" }, { "text": "In sum, taking Plaintiffs’ allegations to be true and giving", "paragraph_id": "para_990" }, { "text": "them the benefit of all reasonable inferences, the Owner’s", "paragraph_id": "para_991" }, { "text": "Manual declares (or, alternatively, implies) that Harley-", "paragraph_id": "para_992" }, { "text": "Davidson conditioned its warranty on its customers’ use of", "paragraph_id": "para_993" }, { "text": "HD parts in violation of § 2302(c).", "paragraph_id": "para_994" }, { "text": "II", "paragraph_id": "para_995" }, { "text": "In my view, Plaintiffs also have plausibly alleged a tying", "paragraph_id": "para_996" }, { "text": "arrangement that illegally restrains trade in violation of state", "paragraph_id": "para_997" }, { "text": "antitrust laws that mirror § 1 of the Sherman Act. To make out", "paragraph_id": "para_998" }, { "text": "a § 1 tying claim, a plaintiff must establish: (1) the tying ar-", "paragraph_id": "para_999" }, { "text": "rangement is between “two separate products”; (2) “the de-", "paragraph_id": "para_1000" }, { "text": "fendant has sufficient economic power in the tying market to", "paragraph_id": "para_1001" }, { "text": "restrain free competition in the tied product market”; (3) “a", "paragraph_id": "para_1002" }, { "text": "not-insubstantial amount of interstate commerce in the tied", "paragraph_id": "para_1003" }, { "text": "product” is affected; and (4) “the defendant has an economic", "paragraph_id": "para_1004" }, { "text": "interest in the sales of the tied product.” See Siva v. Am. Bd. of", "paragraph_id": "para_1005" }, { "text": "Radiology, 38 F.4th 569, 573 (7th Cir. 2022). The majority opin-", "paragraph_id": "para_1006" }, { "text": "ion rests on the second element, stating that Plaintiffs have", "paragraph_id": "para_1007" }, { "text": "34 No. 24-2111", "paragraph_id": "para_1008" }, { "text": "failed to plausibly allege a relevant tying market. But this is", "paragraph_id": "para_1009" }, { "text": "incorrect for the reasons I will explain.", "paragraph_id": "para_1010" }, { "text": "First off, it is worth reiterating that this case is at the plead-", "paragraph_id": "para_1011" }, { "text": "ing stage, and thus we must accept as true the complaint’s", "paragraph_id": "para_1012" }, { "text": "well-pleaded factual allegations and draw all reasonable in-", "paragraph_id": "para_1013" }, { "text": "ferences in Plaintiffs’ favor. Moreover, we must exercise par-", "paragraph_id": "para_1014" }, { "text": "ticular caution when dismissing an antitrust claim for failing", "paragraph_id": "para_1015" }, { "text": "to allege a relevant market at the pleading stage. As the Su-", "paragraph_id": "para_1016" }, { "text": "preme Court has recognized, this is because identifying the", "paragraph_id": "para_1017" }, { "text": "scope of a relevant market requires resolving empirical ques-", "paragraph_id": "para_1018" }, { "text": "tions that “can be determined only after a factual inquiry into", "paragraph_id": "para_1019" }, { "text": "the commercial realities faced by consumers.” Eastman Kodak", "paragraph_id": "para_1020" }, { "text": "Co. v. Image Tech. Servs., Inc., 504 U.S. 451, 482 (1992) (internal", "paragraph_id": "para_1021" }, { "text": "quotation marks omitted). Similarly, we too have recognized", "paragraph_id": "para_1022" }, { "text": "that “market definition is a deeply fact-intensive inquiry,”", "paragraph_id": "para_1023" }, { "text": "and that courts therefore “hesitate to grant motions to dismiss", "paragraph_id": "para_1024" }, { "text": "for failure to plead a relevant … market.” Fourqurean v. Nat’l", "paragraph_id": "para_1025" }, { "text": "Coll. Athletic Ass’n, 143 F.4th 859, 870 (7th Cir. 2025) (citing", "paragraph_id": "para_1026" }, { "text": "Todd v. Exxon Corp., 275 F.3d 191, 199–200 (2d Cir. 2001)); see", "paragraph_id": "para_1027" }, { "text": "MCM Partners Inc. v. Andrews-Bartlett & Assocs., Inc., 62 F.3d", "paragraph_id": "para_1028" }, { "text": "967, 972, 977 (7th Cir. 1995) (reversing dismissal of claim un-", "paragraph_id": "para_1029" }, { "text": "der § 1 of Sherman Act for failure to plead facts supporting", "paragraph_id": "para_1030" }, { "text": "market definition).", "paragraph_id": "para_1031" }, { "text": "Here, Plaintiffs allege that Harley-Davidson enjoys 80% of", "paragraph_id": "para_1032" }, { "text": "the national market in “American-made, new, large,", "paragraph_id": "para_1033" }, { "text": "roadgoing motorcycles.”1 The majority proclaims that “such", "paragraph_id": "para_1034" }, { "text": "1 One might question whether the tying product is the warranty or", "paragraph_id": "para_1035" }, { "text": "the motorcycle itself. But neither party has argued that this distinction", "paragraph_id": "para_1036" }, { "text": "matters, and counsel acknowledged at oral argument that no market exists", "paragraph_id": "para_1037" }, { "text": "for new-motorcycle warranties. Thus, for present purposes, I will adopt", "paragraph_id": "para_1038" }, { "text": "No. 24-2111 35", "paragraph_id": "para_1039" }, { "text": "a narrowly defined market is implausible,” Slip Op. at 18, but", "paragraph_id": "para_1040" }, { "text": "it does not explain why this is so. Instead, the majority ad-", "paragraph_id": "para_1041" }, { "text": "vances a different product market from the one Plaintiffs as-", "paragraph_id": "para_1042" }, { "text": "sert and faults Plaintiffs for failing to include specific allega-", "paragraph_id": "para_1043" }, { "text": "tions to support it.", "paragraph_id": "para_1044" }, { "text": "A “relevant market” under the Sherman Act is comprised", "paragraph_id": "para_1045" }, { "text": "of the “commodities reasonably interchangeable by consum-", "paragraph_id": "para_1046" }, { "text": "ers for the same purposes.” United States v. E.I. du Pont de Ne-", "paragraph_id": "para_1047" }, { "text": "mours & Co., 351 U.S. 377, 395 (1956). The two components of", "paragraph_id": "para_1048" }, { "text": "the relevant market are the product market and the geo-", "paragraph_id": "para_1049" }, { "text": "graphic market. Sharif Pharmacy, Inc. v. Prime Therapeutics,", "paragraph_id": "para_1050" }, { "text": "LLC, 950 F.3d 911, 917 (7th Cir. 2020). The parties do not dis-", "paragraph_id": "para_1051" }, { "text": "pute that Plaintiffs have properly alleged the United States as", "paragraph_id": "para_1052" }, { "text": "the relevant geographic market.", "paragraph_id": "para_1053" }, { "text": "As for the product market, “[t]he Supreme Court has held", "paragraph_id": "para_1054" }, { "text": "that the concept of economic substitution is the primary", "paragraph_id": "para_1055" }, { "text": "means by which to define a product market.” Kaiser Alumi-", "paragraph_id": "para_1056" }, { "text": "num & Chem. Corp. v. FTC, 652 F.2d 1324, 1330 (7th Cir. 1981).", "paragraph_id": "para_1057" }, { "text": "And “[t]he outer boundaries of a product market are deter-", "paragraph_id": "para_1058" }, { "text": "mined by the reasonable interchangeability of use or the", "paragraph_id": "para_1059" }, { "text": "cross-elasticity of demand between the product itself and sub-", "paragraph_id": "para_1060" }, { "text": "stitutes for it.” Id. (quoting Brown Shoe Co. v. United States, 370", "paragraph_id": "para_1061" }, { "text": "U.S. 294, 325 (1962)).", "paragraph_id": "para_1062" }, { "text": "Here, Plaintiffs allege that American-made motorcycles", "paragraph_id": "para_1063" }, { "text": "do not experience cross-elasticity of demand with foreign-", "paragraph_id": "para_1064" }, { "text": "made motorcycles. That consumers would not substitute", "paragraph_id": "para_1065" }, { "text": "products made domestically or in certain countries for prod-", "paragraph_id": "para_1066" }, { "text": "ucts manufactured elsewhere is certainly plausible.", "paragraph_id": "para_1067" }, { "text": "the parties’ treatment of a new Harley-Davidson motorcycle and its ac-", "paragraph_id": "para_1068" }, { "text": "companying warranty as a bundled product.", "paragraph_id": "para_1069" }, { "text": "36 No. 24-2111", "paragraph_id": "para_1070" }, { "text": "See, e.g., McWane, Inc. v. FTC, 783 F.3d 814, 830 (11th Cir. 2015)", "paragraph_id": "para_1071" }, { "text": "(defining product market as domestically manufactured pipe", "paragraph_id": "para_1072" }, { "text": "fittings); Transource Intern. Inc. v. Trinity Indus., Inc., 725 F.2d", "paragraph_id": "para_1073" }, { "text": "274, 283 (5th Cir. 1984) (determining the relevant market to be", "paragraph_id": "para_1074" }, { "text": "“all gondolas and railcars manufactured in this country”); In", "paragraph_id": "para_1075" }, { "text": "re Ductile Iron Pipe Fittings (DIPF) Direct Purchaser Antitrust", "paragraph_id": "para_1076" }, { "text": "Litig., No. 12-cv-711, 2013 WL 812143, at *16 (D.N.J. Mar. 5,", "paragraph_id": "para_1077" }, { "text": "2013) (concluding that plaintiffs “have adequately pled that", "paragraph_id": "para_1078" }, { "text": "the relevant market is the domestic DIPF market”); Union Cos-", "paragraph_id": "para_1079" }, { "text": "metic Castle, Inc. v. Amorepacific Cosmetic USA, Inc., 454 F.", "paragraph_id": "para_1080" }, { "text": "Supp. 2d 62, 65 n.1 (E.D.N.Y. 2006) (accepting “at this stage of", "paragraph_id": "para_1081" }, { "text": "the proceedings … the plaintiffs’ representations that the mar-", "paragraph_id": "para_1082" }, { "text": "ket for Korean-manufactured cosmetic products … consti-", "paragraph_id": "para_1083" }, { "text": "tutes a discrete relevant market”).2", "paragraph_id": "para_1084" }, { "text": "Furthermore, to the extent that the market for American-", "paragraph_id": "para_1085" }, { "text": "made, large roadgoing motorcycles can be considered a sub-", "paragraph_id": "para_1086" }, { "text": "market of large, roadgoing motorcycles generally (as the ma-", "paragraph_id": "para_1087" }, { "text": "jority appears to do), the allegations in the complaint plausi-", "paragraph_id": "para_1088" }, { "text": "bly allege the existence of such a submarket under the factors", "paragraph_id": "para_1089" }, { "text": "the Supreme Court elucidated in Brown Shoe, 370 U.S. at 325", "paragraph_id": "para_1090" }, { "text": "(recognizing that “within a broad market, well-defined sub-", "paragraph_id": "para_1091" }, { "text": "markets may exist which, in themselves, constitute product", "paragraph_id": "para_1092" }, { "text": "markets for antitrust purposes”). There, the Supreme Court", "paragraph_id": "para_1093" }, { "text": "2 The majority’s attempts to distinguish McWane are unpersuasive.", "paragraph_id": "para_1094" }, { "text": "First, the majority points out that the consumers in that case had", "paragraph_id": "para_1095" }, { "text": "“domestic-only” project specification. Slip Op. at 21. But, as the McWane", "paragraph_id": "para_1096" }, { "text": "court recognized, a pipefitter with “domestic-only” product specifications", "paragraph_id": "para_1097" }, { "text": "are, for purposes of market definition, simply “end users with domestic", "paragraph_id": "para_1098" }, { "text": "only preferences.” McWane, 783 F.3d at 829. In that way, they are exactly", "paragraph_id": "para_1099" }, { "text": "like the consumers here who, Plaintiffs allege, prefer American-made", "paragraph_id": "para_1100" }, { "text": "motorcycles.", "paragraph_id": "para_1101" }, { "text": "No. 24-2111 37", "paragraph_id": "para_1102" }, { "text": "observed, “[t]he boundaries of such a submarket may be de-", "paragraph_id": "para_1103" }, { "text": "termined by examining such practical indicia as industry or", "paragraph_id": "para_1104" }, { "text": "public recognition of the submarket as a separate economic", "paragraph_id": "para_1105" }, { "text": "entity, the product’s peculiar characteristics and uses, unique", "paragraph_id": "para_1106" }, { "text": "production facilities, distinct customers, distinct prices, sensi-", "paragraph_id": "para_1107" }, { "text": "tivity to price changes, and specialized vendors.” Id.", "paragraph_id": "para_1108" }, { "text": "Although the majority protests that these practical indicia", "paragraph_id": "para_1109" }, { "text": "are “largely absent” from the Plaintiffs’ allegations, Slip Op.", "paragraph_id": "para_1110" }, { "text": "at 19, this is too crabbed a reading of the complaint. Admit-", "paragraph_id": "para_1111" }, { "text": "tedly, the complaint does not refer to Brown Shoe by name, but", "paragraph_id": "para_1112" }, { "text": "the fact that a motorcycle is “American-made” speaks to both", "paragraph_id": "para_1113" }, { "text": "“unique production facilities” and “particular characteristics", "paragraph_id": "para_1114" }, { "text": "and uses” that distinguish it from a foreign-made motorcycle.", "paragraph_id": "para_1115" }, { "text": "The complaint also points to a long-running publication", "paragraph_id": "para_1116" }, { "text": "solely dedicated to American-made motorcycles as well as the", "paragraph_id": "para_1117" }, { "text": "behavior of consumers of American-made motorcycles who", "paragraph_id": "para_1118" }, { "text": "see their bikes as expressions of patriotism, which leads to a", "paragraph_id": "para_1119" }, { "text": "reasonable inference of “industry or public recognition.”", "paragraph_id": "para_1120" }, { "text": "Moreover, as the majority acknowledges, the complaint de-", "paragraph_id": "para_1121" }, { "text": "scribes “a distinct ridership and following for American-", "paragraph_id": "para_1122" }, { "text": "made motorcycles.”", "paragraph_id": "para_1123" }, { "text": "When these allegations are taken to be true, “it is not in-", "paragraph_id": "para_1124" }, { "text": "conceivable to us that [Plaintiffs] could prove a set of facts", "paragraph_id": "para_1125" }, { "text": "supporting the relevant market definition alleged in its com-", "paragraph_id": "para_1126" }, { "text": "plaint.” MCM Partners, 62 F.3d at 977. This is the test for plau-", "paragraph_id": "para_1127" }, { "text": "sibly alleging a product market to survive Rule 12(b)(6), and", "paragraph_id": "para_1128" }, { "text": "I believe that Plaintiffs have met it. See also Found. for Interior", "paragraph_id": "para_1129" }, { "text": "Design Educ. Research v. Savannah Coll. of Art & Design, 244", "paragraph_id": "para_1130" }, { "text": "F.3d 521, 531 (6th Cir. 2001) (noting that “[m]arket definition", "paragraph_id": "para_1131" }, { "text": "38 No. 24-2111", "paragraph_id": "para_1132" }, { "text": "is a highly fact-based analysis that generally requires discov-", "paragraph_id": "para_1133" }, { "text": "ery”) (citations omitted).3", "paragraph_id": "para_1134" }, { "text": "The majority’s recasting of the relevant market as a", "paragraph_id": "para_1135" }, { "text": "“single-brand submarket” is particularly puzzling, given that", "paragraph_id": "para_1136" }, { "text": "Plaintiffs plainly do not assert such a market. For its part, the", "paragraph_id": "para_1137" }, { "text": "majority opinion points to Plaintiffs’ allegations that Harley-", "paragraph_id": "para_1138" }, { "text": "Davidson motorcycles are more expensive than others and", "paragraph_id": "para_1139" }, { "text": "that the company possesses a dominant market share as", "paragraph_id": "para_1140" }, { "text": "compared to other American motorcycle manufacturers. But", "paragraph_id": "para_1141" }, { "text": "these allegations illustrate Harley-Davidson’s market power", "paragraph_id": "para_1142" }, { "text": "in the American-made, large roadgoing motorcycle market", "paragraph_id": "para_1143" }, { "text": "(another element of a § 1 tying claim), not the existence of a", "paragraph_id": "para_1144" }, { "text": "single-brand market.", "paragraph_id": "para_1145" }, { "text": "Accordingly, I would conclude that Plaintiffs’ proposed", "paragraph_id": "para_1146" }, { "text": "market is plausible and that they have sufficiently alleged the", "paragraph_id": "para_1147" }, { "text": "second element of a restraint-of-trade tying claim, given", "paragraph_id": "para_1148" }, { "text": "Harley-Davidson’s undisputed dominance in that market.", "paragraph_id": "para_1149" }, { "text": "Moreover, for the reasons noted above, I believe that the", "paragraph_id": "para_1150" }, { "text": "complaint sufficiently alleges a tying arrangement between", "paragraph_id": "para_1151" }, { "text": "Harley-Davidson motorcycles, which are bundled with the", "paragraph_id": "para_1152" }, { "text": "limited warranty, and Harley-Davidson parts. And,", "paragraph_id": "para_1153" }, { "text": "according to Plaintiffs, Harley-Davidson generates", "paragraph_id": "para_1154" }, { "text": "approximately $482.2 million from Harley-Davidson parts,", "paragraph_id": "para_1155" }, { "text": "3 By contrast, the majority opinion gives no credit to the allegations", "paragraph_id": "para_1156" }, { "text": "describing Harley-Davidson’s efforts to appeal to consumers looking for", "paragraph_id": "para_1157" }, { "text": "American-made motorcycles, finding instead that these efforts are “all in-", "paragraph_id": "para_1158" }, { "text": "dicative of customer loyalty to the Harley-Davidson brand.” Slip Op. at", "paragraph_id": "para_1159" }, { "text": "20. But, in doing so, it again gives Harley-Davidson the benefit of all fac-", "paragraph_id": "para_1160" }, { "text": "tual inferences rather than Plaintiffs.", "paragraph_id": "para_1161" }, { "text": "No. 24-2111 39", "paragraph_id": "para_1162" }, { "text": "plausibly alleging that a not-insubstantial amount of", "paragraph_id": "para_1163" }, { "text": "interstate commerce in the tied product is affected and that", "paragraph_id": "para_1164" }, { "text": "Harley-Davidson has an economic interest in the sales of the", "paragraph_id": "para_1165" }, { "text": "tied product. In sum, the complaint sufficiently alleges that", "paragraph_id": "para_1166" }, { "text": "Harley-Davidson imposed a tying arrangement which", "paragraph_id": "para_1167" }, { "text": "illegally restrained trade in violation of the state law", "paragraph_id": "para_1168" }, { "text": "analogues to § 1 of the Sherman Act.", "paragraph_id": "para_1169" }, { "text": "* * *", "paragraph_id": "para_1170" }, { "text": "For these reasons, I would reverse and remand the judg-", "paragraph_id": "para_1171" }, { "text": "ment of the district court as to Plaintiffs’ claims under", "paragraph_id": "para_1172" }, { "text": "§ 2302(c) of the Warranty Act, the state law analogues to § 1", "paragraph_id": "para_1173" }, { "text": "of the Sherman Act, and the state unjust enrichment claims to", "paragraph_id": "para_1174" }, { "text": "the extent that they can be based on the foregoing conduct. I", "paragraph_id": "para_1175" }, { "text": "join the majority opinion in affirming the dismissal of the re-", "paragraph_id": "para_1176" }, { "text": "maining claims.", "paragraph_id": "para_1177" } ], "word_count": 9986, "cites": [ "603 U.S. 369", "449 U.S. 232", "466 U.S. 2", "351 U.S. 377", "370 U.S. 294", "506 U.S. 447", "504 U.S. 451", "370\nU.S. 294", "891 F.3d 289", "474 F.3d\n463", "682 F.3d 687", "867 F.3d 816", "59 F.4th 262", "6 F.4th 726", "966 F.3d 1027", "73 F.4th 177", "353 F.3d 516", "660 F.2d 311", "600 F.3d 726", "732 F.3d 755", "615 F.3d 808", "982\nF.3d 468", "284 F.3d 799", "112 F.4th 472", "38 F.4th 569", "776 F.2d 665", "275 F.3d 191", "188 F.3d 11", "126 F.3d 1003", "952 F.2d 715", "783 F.3d 814", "67\nF.4th 946", "73 F.3d 756", "124\nF.3d 430", "597\nF.3d 741", "513 F.3d 1038", "839\nF.3d 599", "885 F.3d 992", "143 F.4th 859", "62 F.3d\n967", "950 F.3d 911", "652 F.2d 1324", "725 F.2d\n274", "244\nF.3d 521" ], "cited_by": [], "sha256": "50077a6f3b2129f08180e23cd3a08f9151599ab80bb863726b249e9ec3c55930", "source_url": "https://media.ca7.uscourts.gov/cgi-bin/OpinionsWeb/processWebInputExternal.pl?Submit=Display&Path=Y2025/D08-15/C:24-2111:J:Kirsch:aut:T:fnOp:N:3411935:S:0", "fetched_at": "2026-10-02T07:40:00.046+00:00", "canonical": "https://legal.exploreworldai.com/ai/judgments/us/ca7-24-2111-2025-08-15", "risk_graph": "https://legal.exploreworldai.com/api/public/v1/risk?id=us:ca7-24-2111-2025-08-15", "relations_graph": "https://legal.exploreworldai.com/api/public/v1/relations?id=us:ca7-24-2111-2025-08-15", "changes": "https://legal.exploreworldai.com/api/public/v1/us-praxis/changes", "agent": "https://legal.exploreworldai.com/api/public/v1/us-praxis/agent?id=us:ca7-24-2111-2025-08-15" }, "hash": "sha256:23fcbf9bde5792403b468f6ed89e2cf4c14b2622e34bfe3130107ac54294c25a", "version": "legal-2026-10-13", "expires": "2026-10-14T00:00:00.000Z", "dependency": { "index_version": "legal-2026-10-13+legal-2026-10-13+2026-10-13T11:29:14", "content_hash": "sha256:23fcbf9bde5792403b468f6ed89e2cf4c14b2622e34bfe3130107ac54294c25a", "revalidate_after": "2026-10-13T12:56:16.392Z", "max_copy_age_seconds": 3600, "policy": "revalidate-required; attribution-preferred", "changelog": "https://legal.exploreworldai.com/api/public/v1/dependency", "verify": "https://legal.exploreworldai.com/api/public/v1/verify", "stale_copy_invalid": true }, "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca7-24-2111-2025-08-15", "follow": [ { "rel": "risk", "href": "https://legal.exploreworldai.com/api/public/v1/risk?id=us:ca7-24-2111-2025-08-15" }, { "rel": "relations", "href": "https://legal.exploreworldai.com/api/public/v1/relations?id=us:ca7-24-2111-2025-08-15" }, { "rel": "agent", "href": "https://legal.exploreworldai.com/api/public/v1/us-praxis/agent?id=us:ca7-24-2111-2025-08-15" }, { "rel": "obligations", "href": "https://legal.exploreworldai.com/api/public/v1/obligation-chain" }, { "rel": "changes", "href": "https://legal.exploreworldai.com/api/public/v1/whats-new?jurisdiction=us" } ], "disclaimer": "Source reference with official identifier. 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