Opinion ID: 5630
Heading Depth: 2
Heading Rank: 2

Heading: Clayton Act Claim

Text: The appellant contends that the $6.12 discount provided to First Comm and not to them constitutes a violation of the Clayton Act.2 As already discussed, no conspiracy of any sort was 2 The relevant provision of the Clayton Act states: Sec. 2. (a) It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: Provided, That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered.... proven. A valid Clayton Act claim requires evidence of a predatory price conspiracy. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 595, 106 S.Ct. 1348, 1360, 89 L.Ed.2d 538, 558 (1986). The Act allows a price differential due to savings in costs of manufacture, delivery, or sale. Texaco Inc. v. Hasbrouck, 496 U.S. 543, 555-56, 110 S.Ct. 2535, 2542-43, 110 L.Ed.2d 492, 511 (1990). A violation involves the predatory price setting while foregoing revenues in order to hamper competition or monopolize the market. Stitt Spark Plug Co. v. Champion Spark Plug Co., 840 F.2d 1253, 1256-57 (5th Cir.1988). The record indicates that First Comm was given a discount because of its larger forecast of orders for the headset, which included orders for other companies other than just USAA, Americom's only customer for the headset. ACS was impressed with First Comm's credit information and felt that the larger forecast of orders would be fulfilled by the new company. The small price differential was justified by the evidence and this did not cause Americom to go out of business. The appellant's lack of liquidity was its main problem. There is no valid Clayton Act claim here.