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Antitrust Keyed to Gavil, 5th Ed.
J. Truett Payne Co., Inc. v. Chrysler Motors Corp.
Citation:
451 U.S. 557, 101 S.Ct. 1923, 68 L.Ed.2d 442 (1981)Facts
J. Truett Payne Co. operated as a Chrysler-Plymouth dealer in Birmingham, Alabama for several decades before going out of business in 1974. From January 1970 to May 1974, Chrysler Motors implemented various “sales incentive” programs that allegedly violated Section 2(a) of the Clayton Act. Under one program, Chrysler assigned each participating dealer a sales objective and paid bonuses on cars sold exceeding that objective. Under another program, dealers had to purchase a certain quota of automobiles before receiving bonuses on retail sales. Payne alleged that Chrysler set its objectives higher than those of competing dealerships, requiring it to sell or purchase more automobiles to obtain the same bonuses. Payne claimed this resulted in paying $81,248 more for its automobiles than its competitors did. Payne also claimed its market share temporarily declined by 4% in 1972, which it attributed to the incentive programs, and that the discrimination forced it to “overallow” on trade-ins to meet quotas, reducing its used car profits.
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