FEDERAL TRADE COMMISSION V. UNIVERSAL-RUNDLE CORP.
387 U.S. 244 (1967)
NATURE OF THE CASE: This was an appeal from an order staying a cease and desist order
until an industry investigation is made.
FACTS: Rundle (P) was involved in manufacturing china and cast iron plumbing fixtures. In
1960 the FTC issued a complaint against P for making sales to some customers at
substantially higher prices than the prices at which P sells such products of like grade and
quality to other purchasers, some of whom are engaged in competition with the less favored
purchasers; as a violation of the Clayton Act. P denied the allegations and alleged that the
price differentials were justified by costs or were made in good faith to meet competition.
During hearings, P made no effort to sustain its affirmative defense and the Commission
found that P's truckload discounts constituted price discrimination because some of P's
customers could not afford to purchase an entire truckload at once. It issued a cease and
desist order. Then P finally spoke and asked that the Commission stay its order until it had
time to investigate the rest of the industry for such practices. P submitted information and
affidavits to show that what they did was an industry wide practice. The Commission denied
the stay. P instituted an appeal. The Court of Appeals ordered the Commission to conduct an
investigation of the industry and ordered the stay; the evidentiary offering by P was
sufficient to demonstrate that the refusal to grant the requested stay constituted a patent
abuse of discretion. The FTC (D) appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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