Functional Discount

Definition of Functional Discount

Such as occurs where a supplier charges different prices to purchasers at different functional levels of distribution and where the higher price is charged to the purchaser at the level farther from the supplier in the chain of distribution, i.e., the retailer is charged more than the wholesaler. Such is permissible under the Robinson-Patman Act. FLM Collision Parts, Inc. v. Ford Motor Co., D.C.N.Y., 406 F.Supp. 224, 234.

That's the definition of Functional Discount in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.