Robinson-patman act

A federal antitrust law which prohibits price discrimination. A seller cannot charge a buyer a discriminatory price and a buyer cannot knowingly benefit from such a price. The prohibition applies only to sales of goods. Discrimination may be justified in some cases if the seller can show a relationship between the discount and the cost of manufacture or delivery of the product (for example, in a volume discount), or if the discount is needed to meet the competition.


 


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