Washington Law Review


Warren Chan


In F.T.C. v. Cement Institute the United States Supreme Court, reversing the Court of Appeals for the Seventh Circuit, upheld a Federal Trade Commission cease and desist order against the maintenance of an industry-wide multiple basing point system for fixing the delivered price of cement.' The grounds. for the order and the holding were (1) that the use of the system was an unfair method of competition in violation of section 5 of the Federal Trade Commission Act, and (2) that the method of pricing resulted in systematic price discriminations between different purchasers of cement of like quality and grade, the effect of which was to lessen competition among and between sellers of cement, and, hence, was in violation of section 2 of the Clayton Act, as amended by the Robinson-Patman Act. The parties subject to the order were the Cement Institute, an unincorporated association, and seventy-four cement corporations, members of the Cement Institute.

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