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What is Texaco’s argument for charging different prices to its customers? Texaco argues that although it charged different prices, it did not discriminate in price within the meaning of the Act, and that, at least to the extent that Gull and Dompier acted as wholesalers, the price differentials did not injure competition.
4. Why does the Court reject Texaco’s argument? The court rejected Texaco's argument, reasoning that the "presumed legality of functional discounts" had been rebutted by evidence that the amount of Gull's and Dompier's discounts was not reasonably related to the cost of any function they performed...
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