Jackson Motors, Inc

question 216

Multiple Choice

Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However, a competitor offered to sell similar motors to one of Jackson Motors' biggest customers for only $80 and Jackson Motors offered that customer-but not its other customers-a $80 selling price. According to the Robinson-Patman Act:

• A) Jackson Motors has not violated the law-it is just meeting competition.
• B) Jackson Motors is breaking the law-unless it offers to sell motors to all of its customers for $80.
• C) Jackson Motors cannot lower its $100 selling price.
• D) Jackson Motors cannot use the "meeting competition in good faith" defense unless it beats its competitor's $80 selling price.
• E) Jackson Motors AND its competitor are both guilty of price fixing.

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