Big Corp.(BC)is in the business of making and selling plastic products.Dominant and Micro both buy plastic products of similar grade and quality regularly from BC.Dominant is the biggest customer of BC while Micro usually buys very small quantities.Due to an unexpected shortfall of raw materials,BC anticipates significant reduction in plastic production at its plants.In order to maintain supply of plastic products to Dominant,BC quotes a 40 percent higher price for its products to Micro.Will this amount to a violation of Section 2(a)of the Robinson-Patman Act?

Question

Quizplus · Accepted Answer

To violate Section 2(a)of the Robinson-Patman Act,a seller must have made two or more sales to different purchasers at different prices.Merely quoting a discriminatory price or refusing to sell except at a discriminatory price does not violate the statute,because no actual purchase is involved.Therefore,by quoting higher prices for its products to Micro,BC will not be violating Section 2(a)of the Robinson-Patman Act.

Big Corp(BC)is in the Business of Making and Selling Plastic Products