Robinson-Patman Act


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Robinson-Patman Act,

passed by the U.S. Congress in 1936 to supplement the Clayton Antitrust ActClayton Antitrust Act,
1914, passed by the U.S. Congress as an amendment to clarify and supplement the Sherman Antitrust Act of 1890. It was drafted by Henry De Lamar Clayton.
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. The act, advanced by Congressman Wright Patman, forbade any person or firm engaged in interstate commerce to discriminate in price to different purchasers of the same commodity when the effect would be to lessen competition or to create a monopoly. Sometimes called the Anti-Chain-Store Act, this act was directed at protecting the independent retailer from chain-store competition, but it was also strongly supported by wholesalers eager to prevent large chain stores from buying directly from the manufacturers for lower prices.

Bibliography

See studies by D. J. Baum (1964) and R. Posner (1986).

References in periodicals archive ?
State antitrust laws are not uniform, although many track sections one and two of the Sherman Act and several track the Clayton and Robinson-Patman Acts.
The Robinson-Patman Act, however, has often led to the opposite response.
The Robinson-Patman Act has been interpreted to regulate three
Major Federal Legislation as applied to the Marketing Four Ps Federal Law Product Place Price Promotion Sherman AntiTrust Act (1890) X X X Food, Drug, and Cosmetic Act (1908) X Clayton Act (1914) X X X Federal Trade Commission Act (1914) X X X Robinson-Patman Act (1936) X X X Miller-Tydings Act (1937) X Wheeler-Lea Amendment (1938) X X Lanham Trademark Act (1946) X X Antimerger Act (1950) X X Magnuson-Moss Act (1975) X X Fair Credit Reporting Act (1975) X Product Safety Act (1976) X X Truth in Lending Act (1976) X X FTC Improvement Act (1976) X X X = General and traditional areas of legal application Table 2.
At root, the Robinson-Patman Act seeks to protect consumer-welfare-enhancing competition by keeping upstream (wholesale) pricing policies from fostering downstream (retail) monopolies.
The House and Senate Reports on both the original Clayton Act section 2 and the Robinson-Patman Act make unmistakably clear that Congress intended to prohibit price discrimination undertaken with an intent to discipline or to exclude a competitor.
He is also a member of the American Bar Association's Antitrust Law Section and a member of the Robinson-Patman Act Committee.
SBLC was created to stop an effort by large business to repeal the Robinson-Patman Act which was viewed by many as the Magna Carta of small business," DeBolt said.
111) Interpretation of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act, (112) found that "if there are substantial physical differences affecting consumer use, preference, or marketability, such products are not of 'like grade and quality' regardless of manufacturing costs.
In retail, the Robinson-Patman Act was designed to prevent price discrimination and ensure that large retail companies couldn't pressure manufacturers into providing lower prices than those available to small companies buying at similar volumes.
The Robinson-Patman Act traces its history to 1914 when a section of the Clayton Act, which would evolve into the Federal Trade Commission Act, became the first federal statute prohibiting certain forms of price discrimination.
The Robinson-Patman Act of 1936 makes price discrimination illegal if it injures competition.