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There are two types of injury that can occur: primary and secondary. The sales in question must cross state lines.Likely injury to competition must be proved.The goods must be of “like grade and quality.”.Commodities and purchases fall under protection of the act, but services and leases do not.Violations of the Robinson-Patman Actįor a claim to be in violation of the RPA, it needs to meet several legal requirements: law to prevent wholesaler distributers from giving preferable volume pricing to franchises over small businesses. In response to the growing power of chain stores in the 1920’s and 1930’s, the Robinson-Patman Act became codified in U.S. Most antitrust legislation today amends this act. The Clayton Act is also important for its protection of organized labor unions and peaceful strikes. This piece of legislation expanded upon the antitrust guidelines by outlawing anticompetitive mergers, predatory and discriminatory pricing, and exclusive sales contracts. Undefined wording in the Sherman Act led to a new law enacted in 1914, the Clayton Antitrust Act. The goal of the act was to outlaw the “restraint of trade or commerce among several states, or with foreign nations.” Several trusts began forming toward the end of the 19 th century, causing a monopoly among the top oil companies. antitrust legislation was the Sherman Anti-Trust Act, enacted in 1890. However, price discrimination is legal if the cost of dealing varies between buyers or if a seller is attempting to meet a competitor’s price offering. If a wholesaler supplier sells products to a franchise at a discounted price not available to a smaller business, such as a volume price, they could be in violation of the Robinson-Patman Act.
antitrust law preventing large franchises and chains from engaging in price discrimination against small businesses. The Robinson-Patman Act of 1936 (RPA) is a U.S. But with a growing number of corporations practicing price discrimination, the future of this branch of antitrust law remains to be seen. At its core, the Robinson-Patman Act is about ensuring fairness by giving equal opportunity to competitors across the market. Antitrust laws created a century ago have set the standard for protection of a competitive market in the United States.