e Supreme Court has ruled at price discrimination claims under e Robinson-Patman Act should be evaluated consistent wi broader antitrust policies. In practice, Robinson-Patman claims must meet several specific legal tests: e Act applies to commodities, but . E MEETING COMPETITION DEFENSE IN ROBINSON-PATMAN: FTC v. E COURTS JOHN R. HALLY* e meeting competition proviso in Section 2(b) of e Robinson-Patman Act' is undoubtedly one of e most significant defenses available to a seller? From e outset of eir mutual dealing wi e section 2(b) language, e Commission and e courts have. ROBINSON-PATMAN ACT & AREA-WIDE PRICING tation, bo as to its general language,8 and as to e application of e statutory defenses.9 Part I of is Note will present e historical development of e meeting competition defense and e status of e Robinson-Patman Act. Generally, whe er conduct meets e good fai standard. Robinson-Patman Act 1 are e changing conditions defense, e cost justification defense, and e meeting competition defense.2 e first two of ese defenses are found as provisos in Section 2 (a) of e Act. e ird, e meeting competition defense, appears in at battle-scarred section, 2 (b). MEETING COMPETITION DEFENSE UNDER E. ROBINSON-PATMAN ACT. by. Iñaki Aguirre. . Working Paper Series: IL. 86/15. Departamento de Fundamentos del Análisis Económico I. Ekonomi Analisiaren Oinarriak I Saila. University of e Basque Country. Downloadable (wi restrictions)! is paper studies e welfare effects of ird-degree price discrimination when competitive pressure varies across kets. In particular, we study e economic aspects of e Robinson–Patman Act associated wi e meeting competition defense. Using equilibrium models, e main result we find is at is defense might be used successfully in cases. In particular, we study e economic aspects of e Robinson-Patman Act associated wi e meeting competition defense. Using equilibrium models, e main result we find is at is defense might be used successfully in cases of pri y line injury precisely when it should not be used, namely when price discrimination reduces social. 07, 2006 · e Robinson-Patman Act provides price discrimination in e sales of commodities of like grade or quality. In Water Craft Management LLC v.Mercury ine, No. 04-31139 (5 Cir. 2006), plaintiff Water Craft, a retailer of outboard motors, sued its supplier, Mercury ine, alleging at Mercury engaged in price discrimination prohibited by e Robinson-Patman Act by offering Water . States Gypsum Co.' accommodating Robinson-Patman's meeting compe-tition defense to Sherman Act price-fixing drine. A line of lower court isions had held at sellers charged wi price fixing under e Sher-man Act for exchanging price information could avoid liability by showing at e exchanges were made for e purpose of complying. Robinson-Patman Act, U.S. law enacted in 1936 at protects small businesses from being driven out of e ketplace by prohibiting discrimination in pricing, promotional allowances, and advertising by large franchised companies. e Robinson-Patman Act is part of e antitrust legislation of e Clayton Act . Meeting-Competition Defense Meeting-Competition Defense. Meeting-Competition Defense Definition. A defense to a claim for price discrimination under e Robinson-Patman Act at applies if e defendant charges a discriminatorily low price in a good-fai attempt to match a competing price. A. Significance of e Meeting Competition Defense If e meeting competition defense is given viable interpretation, e Robinson-Patman Act becomes consonant wi e o er antitrust laws. Like bo e Sherman and Clayton Acts, e Robinson-Patman Act would proscribe only price discriminations based upon economic power unrelated. Robinson-Patman is a little like at. Al ough it does not prevent much price discrimination, at least it has stifled a great deal of competition .). ² See, e.g., Automatic Canteen Co. v. FTC, 346 U.S. 61, 65 (1953) (Frankfurter, J.) (precision of expression is not an outstanding characteristic of e Robinson-Patman Act. e history of e Robinson-Patman Act actually begins in 1914, when section 2 of e Clayton Act became e first federal statute at expressly prohibited certain forms of price discrimination. In 1936, section 2 of e Clayton Act was amended by e Robinson-Patman Act, and it . Patman Act applicability. D. Meeting Competition. e best defense against Robinson-Patman Act liability is e one at is e most sensible reason to discount prices in e real world: meeting competition. e Act has a specific meeting competition defense. e meeting competition defense has several technical require-. 1 e Robinson-Patman meeting competition defense is an affirmative defense to price discrimination. As such, e burden of proving affirmatively e defense is on e party charged wi a violation of e Act. See United States v. - PRICE DISCRIMINATION - DEFENSE OF MEETING COMPETITION UNDER ROBINSON-PATMAN ACT. - Gilbert McLean was one of irty-eight Sun Oil Company retail dealers in Jacksonville, Florida. His filling station was located across e street from a station operated by e Super Test Oil. 19, · Nin Circuit Dismisses Robinson-Patman and Sherman Act Claims, Stating: We Must Return is Capitalist Rumble to e Forum Where it Belongs: e ket. By James M. Mulcahy on 16, . Antitrust lawyers well know at price discrimination claims under e Robinson-Patman Act (RPA) can be very difficult to win. Apr 30, 2007 · e Six and Seven Circuits Provide Practical Robinson-Patman Guidance to Businesses. April 30, 2007. e Robinson-Patman Act has given rise to some truly awful court isions at have created a seller-buyer environment of sometimes unforgiving price rigidity, as well as complex and difficult-to-comply-wi principles about when and to whom sellers must offer price . Plaintiffs must establish competitive injury as well as refute e meeting competition defense. Retail pharmacists might discover at e Robinson-Patman Act is not e ally ey had hoped for. instead, ey should concentrate on in ative alternatives which will . e Clayton Act as amended by e Robinson-Patman Act.. On review, held, order set aside. Nei er e language of section 2(c) nor its legislative history indicates at a seller's broker is covered by at section. Henry Broch and Company v. Federal Trade Commission, (7 Cir. 1958) 261 F. (2d) 725. Robinson-Patman Act. e Robinson-Patman Act is a 1936 statute (15 U.S.C.A. § 13(a–f) at amended Section 2 of e Clayton Act . 15, 1914, ch. 323, 38 Stat. 730), which was e first antitrust statute aimed at price discrimination. e Robinson-Patman Act prohibits a seller of commodities from selling comparable goods to different buyers at different prices, except in certain. 15, 2009 · e court rejected defendants’ meeting competition defense because Sodexho never provide Michael Foods wi competing offers nor did Michael Foods investigate e same. e court also held Sodexho liable for knowingly inducing price discrimination. is case should remind practitioners at e Robinson-Patman Act is alive and well. UNFAIR TRADE PRACTICEs-RoBINsoN-PATMAN Acr-PAYMENTS FOR AD VERTISING UNDER SECTIONS 2(d) AND 2(e)-Plaintiffs, wholesale and retail grocers, brought a class action for treble damages and in ctive reliefl under sections 2(d) and 2(e) of e Robinson-Patman Act. 2. Defendant suppliers of defendant-A &. 1962] Meeting Competition Defense 575 opportunity to present a defense under section 2(b) of e act.3 e de-fense of meeting competition in good fai embodied wi in section 2(b) of e Robinson-Patman Act is available to a manufacturer whose dis-criminatory promotional advertising allowances to customers allegedly. Defense in e Robinson-Patman Act Jason C. Blackford e good fai meeting of competition defense contained in e Rob-inson-Patman Act can, in Mr. Blackford's opinion, be e means of bringing economic rationality to e act. However, to do so e courts and e Federal Trade Commission must be cognizant of e economic. Section 2 of e Clayton Act, as amended by e Robinson-Patman Act, is hereinafter referred to as e Robinson-Patman Act. 11 509 U.S. 209, 220 (1993). 12 509 U.S. 209, 221-22 (1993). 13 A more complete discussion of e U.S. Agencies’ views on predatory conduct can be found at: Note by. e Robinson-Patman Act has given rise to some truly awful court isions at have created a seller-buyer environment of sometimes unforgiving price rigidity, as well as complex and difficult-to-comply-wi principles about when and to whom sellers must offer price discounts and nonprice promotions. For example: Unlike any o er antitrust statute, e Robinson-Patman Act can be violated. 30, 1978 · However, it allows a seller charged wi a Robinson‐Patman Act violation to establish as a defense at e lower price was offered in good fai to meet an equally low price of a competitor. A Practice Note providing a general overview of affirmative defenses to consider asserting when responding to a civil antitrust complaint. is Note explains affirmative defenses at apply in various types of civil antitrust cases, including claims involving violations of Sections 1 and 2 of e Sherman Act, e Robinson-Patman Act, e Clayton Act, and e Federal Trade Commission (FTC) Act. Act, as amended by e Robinson-Patman Act. 2. e United States Court of Appeals for e Fif Circuit reversed e Commission's ision, holding at e defense of meeting competition in good fai pursuant to e proviso of § 2(b) of e Robinson-Patman Act is available. section 2(b) meeting competition defense4 of e Robinson-Patman Act. 5 It en analyzes e Supreme Court's recent ision in Vanco Beverage. 6 Finally, e . Finally, e Seven Circuit agreed at, to take advantage of e Robinson-Patman Act's meeting competition defense, RJR was not required to meet competition on a customer-by-customer basis but could instead meet competition on a broader basis so long as it showed (as it did) at its action was a genuine reasonable response to a competitor's. e Clayton Act:. adds to e Sherman Act by prohibiting specific practices. b. establishes e Federal Trade Commission. c. amends e Robinson-Patman Act. d. requires large companies to notify e government of eir intent to merge. e. amends Section 7 of e Celler-Kefauver Antimerger Act. e Robinson-Patman Act is a 1936 statute (15 U.S.C.A. § 13(a–f) at amended Section 2 of e Clayton Act . 15, 1914, ch. 323, 38 Stat. 730), which was e first antitrust statute aimed at price discrimination. e Robinson-Patman Act prohibits a seller of commodities from selling comparable goods to different buyers at different prices, except in certain circumstances. of law an now surrounds e good fai meeting of competition defense of Section 2 (b) of e Clayton Act, as amended by e Robinson Patman Act. E STATUTE. Section 2(a) of e Clayton Act as amended by e Robinson Patman Act, 2. in general, prohibits discrimination in e selling price. 28, · e Robinson-Patman Act is a federal law passed in 1936 to outlaw price discrimination. e Robinson-Patman Act is an amendment to e 1914 Clayton Antitrust Act . classic illustration of e inconsistency between e Sherman Act and e Robinson-Patman Act-discussion of prices among competing sellers in order to verify customer reports of e availability of better offers from o er sellers. 9. e problem originates in e meeting competition defense of e Robinson-Patman Act. e Robinson-Patman Act makes it unlawful for a purchaser to receive e benefit of an actual discrimination in price. State workers compensation statutes provide for payments for a stated period to workers who are unemployed rough no fault of eir own. Good fai meeting of a competition 2. Changing conditions 3. Cost savings. e 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 at prohibits anticompetitive practices by producers, specifically price discrimination.It was designed to protect small retail shops against competition from chain stores by fixing a minimum price for retail products. Al ough e Robinson-Patman version of e meeting competition in good fai defense [hereinafter referred to as e Section 2(b) defense] was intended to eliminate e alleged L. Rev. 296 (1962). e Good Fai Defense of e Robinson-Patman Act: A New . Recognition of a meeting-competition defense for e buyer in is situation, e respondent argues, would be contrary to e basic purpose of e Robinson-Patman Act to curtail abuses by large buyers. Sherman Act – Civil: We have extensive litigation and compliance experience on e trial and appellate levels and from bo a plaintiff’s and a defendant’s perspective in Section 1 and Section 2 of e Sherman Act, including price fixing, predatory pricing, tying arrangements and related conduct, sham litigation and conspiracies. is defense is explicit in e Robinson-Patman Act but is not always available under e Sherman Act.14 Some jurisdictions have allowed e defense to be inferred under e Sherman Act and o ers have disallowed it.15 Under e Robinson-Patman Act, e meeting competition defense is an absolute defense and allows a company to allege. 23, 1983 · e Robinson-Patman Act contains a ''meeting competition'' defense, which permits a seller to defend itself by showing at its lower price ''was made in . e Robinson-Patman Act. e Clayton Act. – or specifically, a seller charging various buyers different prices for e same product or discriminating in compensation for advertising – will likely be a violation of e Robinson-Patman act. e major and most common defense against a suit wi allegations of ese violations is at.