Portfolio of Seven Case Briefs on Different Business Law Topics - Essay Example

Reeder-Simco is a business entity that acts as a Volvo dealer in Fort Smith, Arkansas. In February of 2000, it filed suit against Volvo on the allegation that its (Reeder’s) sales and profits declined due to Volvo’s price discrimination practices.Reeder-Simco alleges that Volvo offered to other dealers price concessions that were significantly more favorable than those given to Reeder-Simco. Thus, it filed suit against Volvo for allegedly violating the Robinson-Patman Act (RPA), which prohibits forms of discriminatory pricing that reduce competition.

On this basis, Reeder explained that its business is conducted in the following manner: retail customers take bids from dealers who solicit price concessions from the manufacturers. These concessions are factored into dealer’s bids. Reeder accuses Volvo of offering better price concessions to other Volvo dealers bidding for different customers, directly resulting in Reeder suffering losses.The District Court District Court allowed the case to go to a jury, who held in favor of Reeder and awarded damages.

Volvo appealed the decision, arguing a lack of competition was present, which is required by the RPA to apply. Volvo substantiated its contention stating that Reeder was not actually bidding against the Volvo dealers who supposedly were given favorable concessions. The appellate court dismissed the appeal, ruling that even though Volvo dealers do not actually bid against each other, they effectively competed at the same functional level.