United States v. Borden Company

Borden Company and Bowman Dairy Company (defendants) charged chain grocery stores flat discounts exceeding the largest volume-based discounts available to independent stores, and the United States (plaintiff) sued alleging unlawful price discrimination under the Robinson-Patman Act; the companies raised a cost-justification defense, with Borden's cost study comparing average selling costs to chains versus independent-store groups, and Bowman's study showing independent stores generally required additional services chains did not need, though not all independent stores actually used those services. The district court found the cost justifications sufficient and dismissed the suit, and the government appealed directly to the Supreme Court.