Legal Question in Business Law in Texas

preditory pricing

I am a retail where my competition is selling major appliances at prices too low to compete with and remain in business. They're selling the appliances to get the extended warranties and finiance charges and I believe they're selling them at prices low enough to intentionally run the smaller competition out of business so they can later raise their prices. Is this illegal? I read a story about a pharmist in Arkansas who took Wall-Mart to court over this type of pricing issue and he won. Suggestions?????


Asked on 9/12/00, 10:34 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: preditory pricing

If you could prove predatory pricing as part of a systematic plan to eliminate the competition, you could have a legal action for Unfair Business Practices or restraint of trade or some similar vehicle which would allow you to apply for an injunction against these practices.

Knowing and proving, however, are 2 different things, and whether or not you are in a position to obtain courtroom quality proof of your susipcions will be the operative question to be answered before you institute litigation.

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Answered on 10/17/00, 10:52 pm


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