Who violated the Robinson-Patman Act?
Morton Salt
In 1948, the Supreme Court upheld the FTC’s enforcement of the Act finding that Morton Salt violated Robinson-Patman when it sold its finest “Blue Label” salt on a supposedly standard discount that was available only to five national chains.
Is the Robinson-Patman Act still in effect?
Nevertheless, the law has survived, and while the Federal Trade Commission (FTC or Commission) has dramatically scaled back its enforcement of the law over the years, the risk of private treble damage actions remains quite real. Those who choose to ignore the Robinson-Patman Act today do so at their peril.
Is the Robinson-Patman Act an antitrust law?
The Robinson-Patman Act is part of the antitrust legislation found in the Clayton Act of 1914. Large corporations and businesses receive substantial discounts from their wholesale suppliers. If smaller businesses do not receive the same discounts, they cannot offer the same products at competitive prices.
Does Robinson-Patman Act apply to services?
The Act applies to commodities, but not to services, and to purchases, but not to leases. The goods must be of “like grade and quality.” There must be likely injury to competition (that is, a private plaintiff must also show actual harm to his or her business).
What is an example of the Robinson-Patman Act?
For example, the Robinson-Patman act requires that if Wholesale Company ABC sells two 32-inch flat-screen televisions of equal quality— one to Target on August 10 and one to Mom and Pop’s Shop on August 11— both stores must be charged $250 per television.
Which of the following is true of the Robinson-Patman Act?
Which of the following is true of the Robinson-Patman Act of 1936? it illegalizes buyers using their purchasing power to force sellers into granting discriminatory prices. are laws that put a floor under wholesale and retail prices and prevent firms from selling below cost.
Why was the Robinson-Patman Act passed?
The Robinson-Patman Act is a federal law passed in 1936 to outlaw price discrimination. The Robinson-Patman Act is an amendment to the 1914 Clayton Antitrust Act and is supposed to prevent “unfair” competition.
What replaced the Sherman Antitrust Act?
The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. The Sherman Act was amended by the Clayton Act in 1914.
What is the purpose of the Robinson-Patman Act?
PURPOSE OF THE ROBINSON-PATMAN ACT The Robinson-Patman Act (the “Act”) generally prohibits a manufacturer from discriminating in prices and promotional allowances and services between competing resellers of its goods, if such discrimination is likely to create an adverse effect on competition.
Who is the FTC and what do they do?
The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.
What did the Robinson-Patman Act do quizlet?
The Robinson-Patman Act is an amendment to the Clayton Act, which outlaws price discrimination that might substantially lessen competition or tends to create a monopoly. This exception allows a seller in good faith to meet the equally low price, service, or facility of a competitor.
What is the purpose of the Robinson-Patman Act quizlet?
