Which of the following would not be illegal according to the Robinson-Patman Act

Question

Which of the following would not be illegal according to the Robinson-Patman Act a.“Party Packers” getting 10cents off every pack of ribbon they buy after 1000 units b.“Fred’s Farms” offering 50 cents off a crate of strawberries to retailers to match other suppliers with similar rates c. “Sam’s Sandwiches” receiving 5 cents off per pound of cheese 2. Which of the following is an example of a “damaged goods” strategy a.A supermarket offers free parking space but charges higher for groceries b.A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy c. A gift store hikes up the prices on gift wrapping services during its seasonal sale d.All of the above

Explanation / Answer

a. Robinson-PAtman Act checks for any anti-competitive behaviour in the market. In this question, .“Party Packers” getting 10cents off every pack of ribbon they buy after 1000 units is not creating any anti-competitive behaviour and is thus not illegal.

b. damaged goods” strategy means that a seller intentionally damages its product slightly so that it can be sold at a lower price. In this question elevision reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy is damaged goods” strategy by the television reseller.

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