Abstract

The U.S. congress in 1936 executed the Robinson-Patman act, primarily to curb the purchasing power of the large food chains. Since then the buyers and sellers have struggled with its provisions. Today for almost all businessmen, conformation with this law remains a problem. This article presents the Robinson-Patman act from the nonfood retailer point of view. Various sections discuss the act, the nature of buying problems, the source of advice for the buyer, apparent broad alternatives open to the buyer and probable ramifications, if the buyer disregards the act. The greatest effect of the act would apear to be that it has controlled the large supplier to some extent. A second result is that the large vendor firm may have been hurt because small vendor firms in most industries have felt relatively free from violations of the Act. Another effect of the act is that larger vendor firms have been forced to advertise more nationally than they would have done otherwise. And fourth effect of the act is that vendor firms may have been induced to retain or set up independent wholesalers in certain industries.