Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 15

A Wisconsin statute prohibits "the secret payment or allowance of rebates, refunds, commissions, or unearned discounts" to some customers without allowing them to all customers on the same conditions when such practices injure or tend to injure competition or a competitor. Kolbe generally gave dealers a 50 percent discount, but it gave Stock Lumber Co. a discount of 54 percent. Other dealers were not informed of this or of the conditions that had to be satisfied to obtain the same discount. Kolbe gave Jauquet, another lumber dealer, only a 50 percent discount and, when asked, expressly stated that it did not give any other dealer a higher discount. When Jauquet learned of the higher discount given to Stock, it brought suit against Kolbe for violation of the Wisconsin statute. Did Kolbe violate.the statute? [ Jauquet Lumber Co., Inc. v Kolbe Kolbe Millwork, Inc., 476 NW2d 305 (Wis App)]