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Article: Supreme Court limits breadth of Robinson-Patman Act in competitive bidding situations.(Volvo Trucks North America Inc. accused by Reeder-Simco GMC Inc. for price discrimination against dealers)
- Article from:
- Mondaq Business Briefing
- Article date:
- February 1, 2006
CopyrightCOPYRIGHT 2006 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Originally published 26 Jan 2006
On January 10, 2006, the Supreme Court held that a manufacturer may not be held liable for secondary-line price discrimination (price discrimination that injures competition among the discriminating seller's customers) under the Robinson-Patman Act, in the absence of a showing that the manufacturer discriminated between dealers competing to resell its product to the same retail customer. This decision makes clear that each individual bidding situation is the appropriate relevant market for determining whether a manufacturer impermissibly price discriminated among its resellers.
Background
This case arose in the ...