The Robinson-Patman Act Allows for Price Differentials to Different Customers

question 314

Multiple Choice

The Robinson-Patman Act allows for price differentials to different customers under several conditions. Which of these practices would be permitted?

• A) using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture, sale, or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers
• B) using price differentials when price differences are given on the basis of other family businesses
• C) using price differentials when charging different prices to different buyers for goods of like grade or quality
• D) using price differentials when charging different prices on the basis of religious affiliation
• E) using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications

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Definitions:

Power Distance

A cultural dimension that reflects the extent to which inequalities and hierarchical differences are accepted and endorsed by individuals and groups within a society.

Social Status

An individual's position or rank within a social hierarchy, which can be determined by factors like wealth, occupation, education, or family lineage.

Inequalities

The existence of disparities or unequal conditions in aspects such as wealth, resources, opportunities, or treatments among different groups or individuals.

Sexism

Discrimination or prejudice based on a person's sex or gender, often manifesting in societal, political, or economic disadvantages for women.