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The Supreme Court of the United States in deciding Federal Trade Commission v. The Cement Institute, et al. found that the pricing system utilized in the cement industry was unlawful. Under this system, called a basing-point system, the delivered price of a product at any destination is so calculated as to be identical no matter where the product is produced or from what point it is shipped. The calculations are simple. Published and readily available transportation charges are added to published posted prices for selected base points (usually but not necessarily major producing centers); the lowest combination of the two factors-base price and transportation price from a base-is then the delivered price, quoted by all the participants in a basing-point system.

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