What is the purpose of the Robinson-Patman Act quizlet?
What is the purpose of the Robinson-Patman Act 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 significance of the Sherman Antitrust and the Robinson-Patman Acts to the industrial buyer?
What is the significance of the Sherman Antitrust and the Robinson-Patman acts to the industrial buyer? Both acts enforce fair price setting by the supplier by restricting collusion and assuring equal prices for all buyers.
What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
Allegations of Robinson-Patman violations may be defended by asserting and proving either that the differing prices reflect only the cost of the seller’s manufacture or delivery (the “cost justification” defense); or, that the seller is attempting either (1) to meet the competition of another seller, or (2) enable his …
When did the Sherman Antitrust Act end?
The Sherman Act was designed to restore competition but was loosely worded and failed to define such critical terms as “trust,” “combination,” “conspiracy,” and “monopoly.” Five years later, the Supreme Court dismantled the Sherman Act in United States v. E. C. Knight Company (1895).
Who prosecutes antitrust?
The Federal Government. Both the FTC and the U.S. Department of Justice (DOJ) Antitrust Division enforce the federal antitrust laws. In some respects their authorities overlap, but in practice the two agencies complement each other.
Does the FTC sue people?
The FTC protects consumers by stopping unfair, deceptive or fraudulent practices in the marketplace. We conduct investigations, sue companies and people that violate the law, develop rules to ensure a vibrant marketplace, and educate consumers and businesses about their rights and responsibilities.
What is the Robinson-Patman Act and why is it important?
What Is the Robinson-Patman Act? 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.
How should price discrimination claims under the Robinson-Patman Act be evaluated?
The Supreme Court has ruled that price discrimination claims under the Robinson-Patman Act should be evaluated consistent with broader antitrust policies. In practice, Robinson-Patman claims must meet several specific legal tests:
Does the FTC enforce the Robinson-Patman Act?
The FTC is active in enforcement of the Robinson–Patman Act and the Department of Justice is not. This act is one in a category of regulatory enactments that attempt to control price discriminations—or different prices for identical products.
Does the Robinson-Patman Act apply to cooperative associations?
The act only applies to interstate trade and contains a specific exemption for “cooperative associations.” The act has been widely criticized by economists and legal scholars on a variety of grounds. The Robinson-Patman Act requires a business to sell its products at the same price regardless of who the buyer is.
