Who violated the Robinson-Patman Act?
Living Essentials, LLC
On October 21, 2019, a California federal jury cleared Living Essentials, LLC and its holding company, Innovation Ventures, LLC (collectively, Living Essentials), the maker of 5-Hour Energy drink, of claims it had violated the Robinson-Patman Act, the California Unfair Practices Act and the California Unfair …
What happened to the Robinson-Patman Act?
Understanding the Robinson-Patman Act It was intended to prevent large-volume buyers from gaining an advantage over small-volume buyers. Bowing to industry pressures, federal enforcement of the Robinson–Patman Act ceased for several years in the late 1960s.
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 …
What is required to show a Robinson-Patman Act?
[I]n order to prove a violation of section 2(a) of the Robinson–Patman Act, a plaintiff must show (1) that sales were made to two different purchasers in interstate commerce; (2) that the product sold was of the same grade and quality; (3) that defendant discriminated in price as between the two purchasers; and (4) …
What is the difference between the Clayton Act and Robinson-Patman Act?
The Clayton Act prohibits specific practices relating to restraint of trade, such as exclusive sales contracts and giving rebates. The Robinson-Patman Act prohibits price discrimination when it has the effect of lessening competition or creating monopoly.
Who created the Robinson-Patman Act?
President Roosevelt
The Robinson-Patman Act (RPA) was signed into law by President Roosevelt on June 19, 1936 [1]. The RPA amended the Clayton Antitrust Act of the Theodore Roosevelt era.
Why do economists criticize Robinson-Patman Act?
Also, many critics suggest that the act is designed merely to protect small business and that it protects competitors rather than competition. The act has been attacked on economic grounds as well.
Why was Sherman passed?
The Sherman Antitrust Act is a law the U.S. Congress passed to prohibit trusts, monopolies, and cartels. Its purpose was to promote economic fairness and competitiveness and to regulate interstate commerce. Ohio Sen. John Sherman proposed and passed it in 1890.
Is a monopoly illegal?
In United States antitrust law, monopolization is illegal monopoly behavior. The main categories of prohibited behavior include exclusive dealing, price discrimination, refusing to supply an essential facility, product tying and predatory pricing.
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.
Was the Robinson-Patman Act repealed?
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.
What was the Robinson Patman Act of 1936?
The Robinson–Patman Act of 1936 (or Anti-Price Discrimination Act, Pub. L. No. 74-692, 49 Stat. 1526 (codified at 15 U.S.C. § 13)) is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.
When did the Federal Trade Commission stop using the Robinson Patman Act?
The Federal Trade Commission revived its use of the Act in the late 1980s, alleging discriminatory pricing against bookstores by publishers, but enforcement has declined again since the 1990s. On the other hand, over 20 states have price discrimination statutes similar to Robinson–Patman.
When was Morton Salt found to be in violation of the Robinson Patman Act?
In the 1940s, the Federal Trade Commission found Morton Salt to be in violation of the Robinson-Patman Act when it sold its “Blue Label” salt at a discount purportedly available to all customers who purchased a certain quantity.
What does the Robinson-Patman Act require JRS to do?
The Robinson-Patman Act requires JR’s to sell the same products to a local mom and pop store for the same price, even though the smaller retailer cannot purchase in such large volume. If JR’s were to sell the product at a higher price to the local mom and pop store, the company would be found in violation of the Act.