Brokerage and commercial bribery-section 2(c)

• Pages: 19-20

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Robinson-Patman Primer

V. BUYER LI ABILITY FO R INDUCING PRICE

DISCRIMINATION—SECTION 2(f)

The Act was passed in part because of concerns

that large buyers should be restrained from forcing

suppliers to sell to them at more favorable prices.

Thus, Section 2(f) of the Act prohibits a buyer from

knowingly inducing or receiving a discriminator y

price. A buyer may engage in hard bargaining, but

should not accept a low price if the buyer knows,

or should know based on its trade experience, that

the price would be unlawful under the Act. Where a

buyer did not induce the preferential prices, the buyer

has no afrmative duty to inquire as to whether it is

receiving discriminator y prices. Furthermore, if a

buyer truly believes the seller has a valid meeting

competition or cost justication defense, the buyer

will not be deemed to have knowingly induced or

received a discriminatory pr ice. The burden of prov-

ing the buyer’s knowledge is on the plaintiff.

Section 2(f) is generally limited to price discr im-

ination prohibited by Section 2(a), not promotional

allowance and service discrim ination prohibited by

Sections 2(d) and (e).

VI. BROKER AGE AND COMMERCIA L

BRIBERY—SECTION 2(c)

Section 2(c) of the Act prevents certain types of

indirect or disguised price d iscriminations relating to

brokerage commissions. This provision prohibits the

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