Pat's Pen Co

question 14

Multiple Choice

Pat's Pen Co.manufacturers and sells an inexpensive ball-point pen.Salley's Stationery purchases the pens for $.25 each in quantities of 1,000.Salley's discovered that a national chain,a competitor of Salley's,buys the pen at $.20 for 1,000.If Salley's Stationery sues Pat's Pen Co.for price discrimination:

• A) Pat's Pen Co. will win if it can prove that it has been selling to the national chain continuously at the cheaper rate.
• B) Pat's Pen Co. will win if it can prove that it did not intend to economically harm Salley's Stationery.
• C) Salley's Stationery will win unless Pat's Pen Co. can justify the price differential.
• D) Salley's Stationery will win since price discrimination is a per se violation with no real defenses.