Simple English definitions for legal terms
Read a random definition: polygamy
A primary-line injury is when a seller charges very low prices to try to get rid of their competition. This is against the law because it hurts other businesses and makes it hard for them to compete. It is different from a secondary-line injury, which is when a seller charges different prices to different customers, which also hurts competition.
Primary-line injury is a term used in antitrust law to describe the practice of charging below-cost prices to eliminate competition in the market. This is a violation of the Robinson-Patman Act, which prohibits price discrimination.
There are two types of primary-line injury:
Here's an example:
Liggett, a cigarette manufacturer, accused Brown & Williamson of offering discriminatory volume rebates to wholesalers in an attempt to eliminate competition from the economy segment of the cigarette market. This is an example of a primary-line injury because it harms direct competitors of the discriminating seller.