THE VACCINE CENTER LLC DBA v. GLAXOSMITHKLINE LLC SOUTHERN NEVADA HEALTH DISTRICT (2017)

MEMORANDUM*

The Nonprofit Institutions Act exempts non-profits from liability under the Robinson-Patman Act when they purchase supplies for their “own use.” 15 U.S.C. § 13c. The Supreme Court has interpreted “own use” to mean that which promotes the entity's “intended institutional operation.” Abbott Labs. v. Portland Retail Druggists Ass'n, Inc., 425 U.S. 1, 14 (1976).

The Southern Nevada Health District's intended institutional operation is broad: County law empowers it “[t]o take whatever action that is necessary to control communicable diseases,” Clark Cty., Nev., Code § 3.08.070(b). But even activities that conform to an “extraordinar[il]y broad institutional function” can satisfy the “own use” provision. De Modena v. Kaiser Found. Health Plan, Inc., 743 F.2d 1388, 1393 (9th Cir. 1984).

Because the vaccine sales and marketing activities of the Southern Nevada Health District conformed to the intended institutional operation of such a district, the Health District purchased the discounted vaccines for its “own use.” The district court thus properly held that defendants were exempt from Robinson-Patman liability.

AFFIRMED.