Predatory Pricing & Price Discrimination

Question 1

Northeastern Telephone v. AT&T

Answer 1

Predatory Pricing if:

1. Pricing below AVC
2. Recoupment

Question 2

Utah Pie v. Continental Baking Co.

Answer 2

Dramatically declining price structures are enough to be unlawful

1st Line Price Discrimination
Ban applies if:

1. Competition is immediately harmed
   OR
2. Price Discrimination slowly drags prices down to unreasonably low levels

Question 3

Brooke Group v. Brown & Williamson Tobacco

Answer 3

Primary Line Price Discrimination is now looked at exactly same was as predatory-pricing

Question 4

Pacific Bell v. Linkline

Answer 4

Price squeezing

Question 5

Dr. Miles Medical v. John Parks & Sons

Answer 5

Vertical price fixing = per se unlawful

Question 6

U.S. v. Colgate

Answer 6

Firm entitled to choose with whom they deal and on what terms

Question 7

U.S. v. Arnold, Schwinn

Answer 7

Restricting territories (vertical) = per se unlawful

Question 8

Continental v. Sylvania

Answer 8

OVERTURNS SCHWINN

Vertical territorial restraints are now judged under rule-of-reason

Question 9

Leegin v. PSKS

Answer 9

OVERTURNS DR. MILES

Vertical Price-Fixing is now judged under rule of reason