A Primer on the Law of Joint Purchasing: A General Review of Antitrust Law on the Formation and Operation of Joint Purchasing Arrangements for Business ManagersJoint purchasing is a growing phenomenon as businesses join together in a variety of purchasing arrangements to reduce overhead costs and achieve lower purchase prices. While agreements between buyers are generally treated more leniently than agreements between sellers, antitrust issues can be presented by various features of a buying group - including the group's structure, membership policies, purchase volumes, cost of collectively-purchased items, and information sharing policies - as well as price discrimination. The Section of Antitrust Law of the American Bar Association has developed this general guide to the law of joint purchasing to aid non-antitrust lawyers' and business managers' understanding of when and how the antitrust laws apply to group purchasing arrangements. It is written primarily to help businesspersons to understand the risks and comply with the law. This primer is not a substitute for legal advice but, rather, is offered as background to help spot issues so that advice may be sought from an experienced attorney. The booklets are about the size of a pocket journal and have a space on the back to identify the law firm or company and contact counsel.They are available singly and, at substantial discounts, in convenient packs of 25 copies each. |
Common terms and phrases
agreements American Bar Association Ancillary Restraints antitrust concern antitrust risks Apply the Government bers Buyer Liability buying group buying-group members cern chasing competing buyers competitive levels competitor collaborations confidential Cost Safety Zone courts discounts downstream markets economies of scale efficiency-enhancing employers example Federal Trade Commission fees fixing purchase prices Franchisee Buying Cooperatives Government Guidelines group members compete group purchases health-care industry health-care services HMOs Input Cost Safety integration of purchasing interbrand Internet B2B joint buying joint IP licensing joint pur joint purchasing arrangements joint venture jointly purchased inputs market power Markets Where Group ment monopsony power negotiate operator output-enhancing efficiencies participants petitors Potential Anticompetitive prepared to demonstrate Price Discrimination Issues Primer pro-competitive benefits product or service purchase commitments purchase volumes Qualifying for Rule R-P Act Reason Analysis relevant market Robinson-Patman Act rule of reason Section of Antitrust sellers system's franchisees tion tive unlawful vendors warehousing