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