Summary

Portrait of Harlan F. Stone Harlan F. Stone Federal Trade Commission v. A. E. Staley Manufacturing Company…

Instead they met and followed their competitors' prices by prices rendered artificially high, by the inclusion of unearned freight proportioned to the amount by which their competitors' delivered costs exceeded their own.
We cannot say that a seller acts in good faith when it chooses to adopt such a clearly discriminatory pricing system, at least where it has never attempted to set up a non-discriminatory system, giving to purchasers, who have the natural advantage of proximity to its plant, the price advantages which they are entitled to expect over purchasers at a distance.
Source: Wikisource

Portrait of Harlan F. Stone Harlan F. Stone Federal Trade Commission v. A. E. Staley Manufacturing Company…

But this is no answer to the ruling of the Commission that the competitive situation did not justify respondents' pricing system, since respondents' argument is based upon a hypothesis, which never in fact existed. The fact that respondents' prices are lower than those they might have charged, but never did charge, does not tend to show the establishment of a lower price to meet an equally low price of a competitor.
Source: Wikisource

Portrait of Harlan F. Stone Harlan F. Stone Federal Trade Commission v. A. E. Staley Manufacturing Company…

In the Corn Products Refining Company case we hold that this price system of respondents' competitor in part involves unlawful price discriminations, to the extent that freight differentials enter into the computation of price, as a result of the selection as a basing point of a place distant from the point of production and shipment. Thus it is the contention that a seller may justify a basing point delivered price system, which is otherwise outlawed by § 2, because other competitors are in part violating the law by maintaining a like system.
Source: Wikisource

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