vs. Reeder-Simco GMC, Inc.,1 Kelo vs. City of New London,2 Wal-Mart Stores, Inc. vs. Samara Brothers, Inc.,3 Anderson vs. City of LaVergne,4 Dearborn vs. Real Estate Agency,5 Rhudy vs. Bottlecaps, Inc.,6 and Kain v. Bluemound East Industrial Park, Inc.,7
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 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 that 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 allowe ...