Acme produces hamburger at a processing plant. Stores send trucks to pick up the meat. Prince, a large chain of grocery stores, tells Acme it will buy its hamburger if Acme will charge it 5% less than what the grocery stores pay. Acme sells the meat to Prince for less. What violation of the antitrust law may have occurred?

Question

Quizplus · Accepted Answer

The scenario describes price discrimination, which violates the Robinson-Patman Act of 1936. This act prohibits sellers from charging different prices to buyers for same goods or services, if the pricing difference would substantially injure competition. In this scenario, Acme is charging different prices to different buyers (grocery stores and Prince) for the same meat, which may harm competition.

Acme Produces Hamburger at a Processing Plant