Clarissa Kessler Operates a Store That Sells Toys

question 20

Multiple Choice

Clarissa Kessler operates a store that sells toys.Her business suffered tremendously when a giant discount store chain opened a store in the area and is able to sell its products for less than Clarissa's wholesale cost.Is this evidence of illegal price discrimination on the part of the discount store chain?

• A)Yes, it is clearly a violation of the Robinson-Patman Act.
• B)No, because it can be argued that the discount store chain is justified in charging lower prices because it is a large-volume buyer and is able to purchase toys at a lower wholesale price than Clarissa.
• C)Yes, the discount store chain is engaging in predatory pricing.
• D)No, even if the price discrimination is based on differences in cost, the law states that it is not illegal.

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Definitions:

Iron Deficiency

A condition resulting from an insufficient amount of iron in the body, leading to reduced levels of hemoglobin in the blood.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans; a significant event in female puberty.

Primary Sexual Organs

The main organs directly involved in human reproduction, which in males include the testes producing sperm, and in females, the ovaries producing eggs.

Reproduction

The biological process by which new individual organisms are produced from their parents, ensuring the continuation of a species.