Guide to antitrust

Legitimate Business Reason

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Legitimate Business Reason
Cost Justification: A price discrimination claim can also be defeated if you can prove there was a cost justification for giving a different price (credit term). The details required to establish this defense will be:

a) Differences in the cost of manufacturing, sale or delivery

Market Conditions: A differing price can be defended where that difference resulted from market conditions (e.g. deterioration of products, seasonal goods, discontinued items)
Superior Credit History or Records: Establishing a credit line/limit for a financially healthy customer which requiring a financially troubled company to pay C.O.D or C.I.A is legitimate because it is based on your company’s credit risk.

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