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Administrative Law Keyed to Cass
Federal Trade Commission v. Universal-Rundle Corp.
Citation:
387 U.S. 244 (1967)Facts
Universal-Rundle Corporation manufactured and sold plumbing fixtures throughout the United States. In 1960, the Federal Trade Commission charged that Universal-Rundle had engaged in price discrimination by offering truckload discounts averaging approximately 10% to customers who could purchase in such quantities, while other customers who competed with the favored purchasers but could not afford truckload purchases paid substantially higher prices. After evidentiary hearings in which Universal-Rundle made no effort to sustain its affirmative defenses of cost justification or meeting competition in good faith, the Commission found violations of Section 2(a) of the Clayton Act and issued a cease-and-desist order. One month after the order issued, Universal-Rundle petitioned for a stay, submitting evidence that competitors offered larger truckload discounts averaging 18%, that Universal-Rundle held only 5.75% market share while five competitors held 6-32% shares, and that Universal-Rundle had sustained losses while competitors reported profits.
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