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What would be illegal, according to the Robinson Patman act?

Question:

What would be illegal, according to the Robinson Patman act?

Antitrust Law in the United States:

One of the government's functions is to legislate for the common good. It is generally not good for the public if there is one company that has control of an entire industry. The U.S. has laws that have been passed to mitigate that situation.

Answer and Explanation:

The Robinson-Patman Act was passed in 1936, following the Sherman Act of 1890 and the Clayton Act of 1914. Robinson-Patman makes price discrimination illegal if it has the effect of lessening competition. The law applies for interstate commerce transactions involving similar or identical goods that are sold to different buyers. Quantity discounts, for example, are still allowed as a valid reason for charging two customers different prices.


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