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.
federal statutes that regulate trade in order to maintain competition and prevent monopolies. Many common business practices are governed by these statutes. The Sherman Antitrust Act of 1890 made price-fixing (the setting of prices in cooperation with competitors) illegal. The Clayton 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. If a 10% discount for promotion expense is awarded to one dealer and a 20% discount to another, a charge of price discrimination could be made by the first dealer.
