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:

Incentives

Incentives or disincentives that encourage people or organizations to behave in specific manners.

Insurance Premiums

The amounts paid for insurance coverage, typically charged monthly or annually, to maintain the insurance policy.

High Deductible

A high deductible refers to the larger initial amount paid by an insured person before insurance coverage for healthcare costs begins, often leading to lower premium costs.

Low-risk Drivers

Individuals who are considered to have a lower probability of filing an insurance claim due to their safe driving habits, often resulting in lower insurance premiums.