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Ftc v. Henry Broch & Co., 363 U.S. 166 (1960)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Ftc v. Henry Broch & Co., 363 U.S. 166 (1960)
FTC v. Henry Broch & Co. No. 61 Argued January 14, 18, 1960 Decided June 6, 1960 363 U.S. 166
CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT
Syllabus
In order to meet the bid of a favored buyer, a seller’s broker reduced his brokerage commission from 5% to 3%, which was reflected in the seller’s reduction of the price of apple concentrate from $1.30 per gallon to $1.25 per gallon; the sale was consummated at that price; and similar concessions were granted on subsequent sales to the same buyer, but not to any other buyer.
Held: the seller’s broker violated § 2(c) of the Clayton Act, as amended by the Robinson-Patman Act, which makes it unlawful for "any person" to make any allowance in lieu of "brokerage" to the "other party to such transaction." Pp. 167-177.
(a) A seller’s broker is included within the term "any person" as used in § 2(c). P. 170.
(b) Such an allowance was not made lawful by the proviso of § 2(a) which exempts from the prohibitions of that section price differentials based on savings in selling costs resulting from differing methods of distribution. Pp. 170-174.
(c) The fact that the buyer was not aware that its favored price was based in part on a discriminatory reduction in the broker’s commission is immaterial. Pp. 174-175.
(d) Section 2(c) applies to payments or allowances by a seller’s broker to a buyer, whether made directly to the buyer or indirectly through the seller. Pp. 175-176.
261 F.2d 725, reversed.
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Chicago: U.S. Supreme Court, "Syllabus," Ftc v. Henry Broch & Co., 363 U.S. 166 (1960) in 363 U.S. 166 363 U.S. 167. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=AICFWFSMZSK3L7G.
MLA: U.S. Supreme Court. "Syllabus." Ftc v. Henry Broch & Co., 363 U.S. 166 (1960), in 363 U.S. 166, page 363 U.S. 167. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=AICFWFSMZSK3L7G.
Harvard: U.S. Supreme Court, 'Syllabus' in Ftc v. Henry Broch & Co., 363 U.S. 166 (1960). cited in 1960, 363 U.S. 166, pp.363 U.S. 167. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=AICFWFSMZSK3L7G.
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