The Robinson-Patman Act Does Permit Some Price Differences-But They Must

question 214

Multiple Choice

The Robinson-Patman Act does permit some price differences-but they must be based on

• A) cost differences.
• B) the need to make profits.
• C) accounting practices.
• D) cartel requirements.
• E) conscious parallel action.

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Definitions:

Prepaid Freight

Costs paid in advance for the transportation of goods, which are typically recorded as a prepaid expense until the goods are delivered.

Merchandise Return

The process of a customer returning previously purchased merchandise back to the business, often leading to a refund or store credit.

Trade Discount

A reduction in the list price granted by a seller to a buyer based on the volume of the transaction or the buyer's trade status.

Catalog List Price

The official selling price of a product as listed in a catalog, before any discounts or promotions are applied.