Lisette Owns a Shoe Store on the Border of France

question 49

Multiple Choice

Lisette owns a shoe store on the border of France. Due to price discrimination, she can buy Louboutin leather boots in Italy at a lower cost than purchasing them from her local French supplier, so once a month she drives to Italy and buys boots to resell at her store. What is this an example of?

• A) speculation
• B) arbitrage
• C) dumping
• D) predatory pricing
• E) modeling

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Definitions:

Double Jeopardy Clause

A provision of the Fifth Amendment to the U.S. Constitution that protects individuals from being tried twice for the same offense in the same jurisdiction.

Gideon's Rule

A legal principle stemming from Gideon v. Wainwright (1963) that guarantees the right to free legal representation for defendants in criminal cases who cannot afford an attorney.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that guarantees equal protection under the law to all citizens.

Constitutional Limit

Restrictions and boundaries set by a constitution that determine the scope of powers and authority of government bodies and officials.