A Manufacturer Could Try to Defend Itself Against Charges of Price

question 70

Multiple Choice

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:

• A) the products were not of "like grade and quality."
• B) any price differences were to "meet competition in good faith."
• C) the price differences did not injure competition.
• D) the price differences were justified on the basis of cost differences.
• E) All of these are possible defenses against price discrimination charges.

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Definitions:

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Financial Statement Formats

The specific layout and organization of information within financial documents, such as balance sheets and income statements, which comply with accounting standards.

Cash Flow Statement

A financial document that shows the amount of money a business has on hand at the beginning of a time period, receipts coming into the business, and money going out of the business during the same period.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.