Caribe BMW, Inc. v. Bayerische Motoren Werke Artiengesellschaft

19 F.3d 745 (1994)

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Caribe BMW, Inc. v. Bayerische Motoren Werke Artiengesellschaft

United States Court of Appeals for the First Circuit
19 F.3d 745 (1994)

Facts

Caribe BMW, Inc. (Caribe) (plaintiff) purchased cars wholesale from supplier Bayerische Motoren Werke Artiengesellschaft (BMW AG) (defendant) and then sold the cars at retail. BMW AG also sold cars wholesale to BMW of North America, Inc. (BMW NA) (defendant). BMW NA, in turn, sold these cars to retailers who competed with Caribe, but for a price lower than the price at which BMW AG sold its cars to Caribe. BMW NA was a wholly owned subsidiary of BMW AG. Caribe brought suit against both BMW AG and BMW NA, alleging price discrimination under the Robinson-Patman Act. The trial court concluded that Caribe’s case was unsustainable because the Robinson-Patman Act requires a single person to have engaged the price discrimination, and that such a situation did not exist here because BMW AG and BMW NA were two separate persons for purposes of the act. It rejected Caribe’s argument that BMW NA, as a wholly owned subsidiary of BMW AG, was the same person as BMW AG. Caribe appealed.

Rule of Law

Issue

Holding and Reasoning (Breyer, C.J.)

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