Posted by Social Science Research Network
Legal Aspects of Pricing
By Jordan Kelner
Abstract: This technical note explores some of the legal implications that companies face when deciding how to price their goods. It focuses on the three main federal antitrust laws: the Sherman Antitrust Act, the Clayton Antitrust Act, and the Robinson-Patman Act. By learning the basics of these antitrust laws, those who read this note will have a better idea of how to avoid violating these laws.
Excerpt
UVA-M-0856
Dec. 17, 2013
LEGAL ASPECTS OF PRICING
I. Introduction
A. Goals of This Technical Note
This technical note explores some of the legal implications that companies face when deciding how to price their goods. This note focuses on the three main federal antitrust laws: the Sherman Antitrust Act, the Clayton Antitrust Act, and the Robinson-Patman Act. By learning the basics of these antitrust laws, those who read this note will have a better idea of how to avoid violating these laws. To be clear, this note will not make you a legal expert. The purpose is not that you come to recognize every nuance of the law in this area, but that you develop an understanding of when you might want to seek legal counsel before making decisions about pricing. To that end, this note provides you with some specifics about what constitutes illegal pricing behavior and also helps you gain a broad understanding of the purpose of these laws.
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