Bayer Corporation produced Bayferrox, a synthetic iron oxide pigment used to color paint, plastics, and building and concrete products. Hoover Color Corporation was one of several primary distributors of this pigment. Hoover therefore purchased Bayferrox from Bayer on a regular basis. For a number of years, Bayer had employed a volume-based incentive discount pricing system. Under this system, the price a distributor paid depended on the total amount of Bayferrox purchased by that distributor during the previous year. The quantities of Bayferrox purchased by Hoover were significantly smaller than those purchased by Hoover's competitors, Rockwood Industries and Landers-Segal Co. (Lansco). As a result, Hoover received smaller price discounts from Bayer than Rockwood and Lansco received. In 1992, for instance, Hoover received a 1 percent discount off Bayer's distributor market price for Bayferrox, whereas Lansco and Rockwood were given 6 percent and 10 percent discounts, respectively. Hoover sued Bayer on the theory that Bayer's volume-based incentive discount pricing system involved price discrimination, in violation of § 2(a) of the Robinson- Patman Act. Bayer contended that it set its prices in a good faith attempt to meet competition in the marketplace, and that it was thus entitled to the protection of the affirmative defense set out in § 2(b) of the statute. Holding that Bayer was entitled to the protection of the "meeting competition" defense, the district court granted summary judgment in favor of Bayer. Was the district court's decision correct?
Answer to relevant QuestionsIn 1982, a subsidiary of W. S. Kirkpatrick & Co. won a Nigerian Defense Ministry contract for the construction and equipment of an aeromedical center at a Nigerian Air Force base. Environmental Tectonics Corporation ...Azteca, which operates a chain of restaurants, employed Sanchez from October 1991 to July 1995. Throughout his tenure at Azteca, Sanchez was subjected to a relentless campaign of insults, name-calling, and vulgarities. Male ...Villegas was co-owner and vice-president of Plaza Health Laboratories, a blood testing laboratory in Brooklyn, New York. On two occasions between April and September, Villegas loaded containers of numerous vials of human ...Steve Holmes and his son Mike were partners in a construction business. Steve also owned a ranch, which he contributed to the partnership, even though Steve was still listed as the owner of record. Steve learned of a ...Florence and Michael Acri were married and also partners in the Acri Café, which they jointly managed. For the first 15 years of their marriage, Michael had been in and out of sanitaria for the treatment of mental ...
Post your question