Price Discrimination: Common or Illegal?
Essay specific features
September 19, 2015
No of pages / words:
3 / 674
Rating of current essay:
According to the Robinson-Patman Act in 1936, five elements must be present:
1. Discrimination - charging various prices to various customers. If the price difference is because of a discount or allowance made to customers and some do not take advantage of it, there is no discrimination.
2. Sales to Two or More Purchasers - the different prices must be charged on "reasonably contemporaneous sale to to two or more purchasers"...
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Sales to Two or More Purchasers - the different prices must be charged on "reasonably contemporaneous sale to to two or more purchasers". Actual sales and agreements must exist. This does not include annual or semi-annual sales.
3. Goods - Robinson-Patman appies to the sale of goods, not services.
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