Filene's Basement Filed for Bankruptcy in May 2009

question 1

Multiple Choice

Filene's Basement filed for bankruptcy in May 2009.In November 2009,Filene's Basement started its "going-out-of-business" sales.Are such price discriminations legal?

• A) No,such discounts are per se illegal under Section 7 of the Clayton Act.
• B) Yes,such discounts are legal because Filene's Basement can legally set resale prices.
• C) Yes,such discounts are legal under the statutory defense of changing conditions.
• D) No,such discounts are illegal considering they are provided only for a limited time.

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Definitions:

Slow To Anger

A temperament or personality trait of an individual who does not easily become angry or agitated, demonstrating patience and tolerance.

Hardy Personality

A person who seems to thrive on stress but lacks the anger and hostility of the Type A personality.

Challenges

Refers to obstacles or difficulties that need to be overcome.

Type C Personality

Pleasant but repressed person, who tends to internalize his or her anger and anxiety and who finds expressing emotions difficult.