Define: Pass-On Defence

Pass-On Defence
Pass-On Defence
Quick Summary of Pass-On Defence

Pass-on defense is utilised by defendants in antitrust cases to assert that they did not suffer any harm from an antitrust violation as they transferred any excess or insufficient charges to another party in the distribution chain.

Full Definition Of Pass-On Defence

Pass-on defense is a legal strategy employed by defendants in lawsuits to assert that they did not incur any losses because they transferred any excess or insufficient charges to another party in the distribution process. For instance, if a manufacturer is accused of overcharging a retailer, the manufacturer may argue that the retailer passed on the overcharge to the consumer, thus absolving themselves of any damages. This defense is frequently utilised in antitrust cases where a member of the distribution chain is accused of engaging in price-fixing or other anti-competitive practices. The defendant may contend that any overcharge was passed on to the subsequent member of the chain, thereby negating any losses suffered. In essence, pass-on defense allows defendants to shift responsibility to another party in the distribution chain and evade liability for any damages.

Pass-On Defence FAQ'S

A pass-on defence is a legal argument used by a defendant to claim that they should not be held liable for damages because the plaintiff passed on the cost of the alleged harm to someone else.

A pass-on defence can be used in cases where the defendant is being sued for damages related to antitrust violations, price-fixing, or other economic harm. The defendant argues that any overcharge or harm was passed on to others in the supply chain, such as consumers or downstream purchasers.

No, a pass-on defence is not always successful. Courts will consider various factors, including the specific circumstances of the case and the evidence presented, to determine the validity of the defence.

Yes, a plaintiff can challenge a pass-on defence by presenting evidence to show that the alleged harm was not passed on to others and that the defendant should still be held liable for the damages.

To support a pass-on defence, the defendant may need to provide evidence of the alleged harm being passed on, such as pricing data, sales records, and expert testimony.

No, a pass-on defence is typically used in civil cases involving economic harm or antitrust violations, and may not be applicable in criminal cases.

Yes, there have been cases where defendants have successfully used a pass-on defence to avoid liability for damages, but each case is unique and the outcome will depend on the specific facts and evidence presented.

Yes, a pass-on defence can be used in international legal disputes, but the laws and regulations governing the defence may vary by jurisdiction.

One potential drawback of using a pass-on defence is the burden of proof on the defendant to demonstrate that the harm was passed on, which may require extensive evidence and expert testimony.

Yes, it is advisable to consult with a lawyer who has experience in antitrust and economic harm cases before using a pass-on defence, as they can provide guidance on the best legal strategy for your specific situation.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 27th April 2024.

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