This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
According to Chief Justice Rehnquist, the central issue is whether the United States Postal Service qualifies as a “person” under the Sherman Act and related antitrust statutes.
According to United States Postal Service, the Ninth Circuit previously held that the Postal Service may be sued for treble damages under federal antitrust law, but the petitioner argues that holding was erroneous.
The respondent contends that Congress authorized the Postal Service to compete commercially, making it a “person” for antitrust purposes.
Background and question before the Court
According to United States Postal Service, the Ninth Circuit held that the Postal Service may be sued for treble damages under federal antitrust laws.
According to United States Postal Service, the petitioner argues that this holding was erroneous because the Postal Service is not a “person” under the antitrust statutes.
According to Chief Justice Rehnquist, the Court asked whether any instrumentalities of the United States could be considered a person under the Sherman Act.
What each side argues
Petitioner – United States Postal Service
According to United States Postal Service, the Postal Service is not a “person” under antitrust law.
According to United States Postal Service, the Ninth Circuit’s holding that the Postal Service may be sued for treble damages was erroneous.
According to United States Postal Service, the Postal Service may sue and be sued in its official name.
According to Petitioner, congress treats the Postal Service as a federal entity subject to statutes such as the FOIA, Privacy Act, and Title VII, not as a private corporation.
Respondent – Flamingo Industries (USA) Ltd.
According to Respondents, congress launched the Postal Service into the commercial world, authorizing it to compete and thus making it a “person” under antitrust law for several reasons.
According to Respondents, the Postal Service contains a “sue‑and‑be‑sued” clause that distinguishes it from cases lacking such a clause.
According to Mr. Krent, public corporations, states, and foreign governmental entities have been treated as “persons” under antitrust law; the Postal Service should similarly qualify.
According to Mr. Krent, historical case law under the Lanham Act suggests the Postal Service can be considered a “person.”
What happened at oral argument
Chief Justice Rehnquist asked whether any instrumentalities of the United States could be considered a person under the Sherman Act.
According to Justice, a Justice inquired about patent infringement issues.
A Justice asked whether, before the Postal Reorganization Act, the answer to the “person” question would have been no.
The Court indicated it would reserve the balance of its time.
According to Chief Justice Rehnquist, the case was submitted at 10:59 a.m.
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 518bc0656e0762f5ba12-r1-1916c2a942259dfa.pdforal argument transcript
Guide generated September 20, 2026. Automated validation accepted this version.