Price discrimination takes place when a seller charges competing buyers different prices for the same "commodity" or discriminating in the provision of "allowances"Xcompensation for advertising and other servicesXthat may be violating the Robinson-Patman Act. This kind of price discrimination may hurt competition by giving favored customers an edge in the market that has nothing to do with the superior efficiency of those customers.
The Robinson-Patman Act, enacted by Congress in 1936, is concerned with discrimination in the prices charged by sellers to various customers. More business decisions are affected by the Act than any other antitrust law. Virtually every interstate sale and promotion of commodities through wholesale distribution and other channels is subject to its terms.
This law, like other antitrust laws, introduces uncertainty and complexity into the day-to-day operation of business. However, compliance with the antitrust laws is not an option. Therefore, a basic understanding of these laws is necessary for the business person who must comply with its requirements and meet the business challenges presented in today's highly competitive markets. Fina
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