Business Definition for: robinson-patman act
robinson-patman act
legislation that forbids quoting different prices to competing customers unless such price discrimination is justified by differences in costs of manufacturing, sales, or delivery.
robinson-patman act
1936 federal amendment to the
Clayton Act
that prohibited specific forms of price discrimination not adequately addressed by the Clayton Act. Large volume buyers who might use their buying power to extract special deals, including quantity discounts, free promotional materials or purchase allowances, were targeted by the Robinson-Patman Act. Another target is sellers who offer price discounts not based on true cost differentials. The Robinson-Patman Act imposes limits on these practices without prohibiting them entirely. The act is enforced by the Federal Trade Commission in conjunction with the Department of Justice.
See also
Miller-Tydings Fair Trade Act
robinson-patman act
Related Terms:
1937 amendment to the Sherman Act that exempted from antitrust laws any interstate price-fixing agreements concerning trademarked or brand name products; also called fair trade law. The intent of the Miller-Tydings Act was to address concerns about big chains pushing out small retailers through loss leader pricing. The Miller-Tydings Act gave manufacturers control over the prices charged by retailers. The Miller-Tydings Act was repealed in 1975 by the Consumer Goods Pricing Act. Today, the only price protection the manufacturer has is the suggested list price, which can't be legally enforced.
federal statutes that regulate trade in order to maintain competition and prevent monopolies. Many common business practices are governed by these statutes. The Sherman Anti-Trust Act of 1890 made price-fixing (the setting of prices in cooperation with competitors) illegal. The Clayton Anti-Trust Act of 1914 outlawed price discrimination (charging different prices to different buyers), as did the Robinson-Patman Act of 1936. Under these Acts, advertising and promotional allowances are permitted only if they are offered to all dealers on equal terms.
Referring Terms:
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
