W & W, Inc manufactures and sells widgets. It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers. Does Marklin have liability for price discrimination? Does W & W, Inc have liability for price discrimination? Explain
W & W, Inc., if its action substantially lessened competition or tended to create a monopoly, has liability under the Robinson-Patman Act which amended Section 2 of the Clayton Act. Under this Act, W & W would have liability, because it is a seller of goods who granted to a buyer a discount that was not offered to all other purchasers on proportionately equal terms. Marklin also has liability if he knowingly received the illegal discrimination in price. Liability would be civil and not criminal, however. Price differentials may be justified by proof of a cost savings to W & W.
You might also like to view...
A pay structure in which employees are paid based on the work knowledge that they acquire is known as:
A. assignment-based pay structure B. skill-based pay structure C. duty-based pay structure D. task-based pay structure E. work-based pay structure
A company implementing a liberal policy for accepting customers bringing back unwanted or defective purchases relates to which of the eight key supply chain processes?
a. Customer relationship management b. Demand management c. Supplier relationship management d. Returns management
The members of the management faculty in the business school go out at the end of the semester to a local restaurant for dinner and socializing. They are both a formal and informal group.
Answer the following statement true (T) or false (F)
One example of modern day slavery, as discussed in the interview with Kevin Bales, is:
a. Purchased human labor for farming – just as it existed in early U.S. History with humans being kidnapped, transported and sold on the open market. b. Debt bondage – where families borrow money with the collateral being their future labor and the future labor of their offspring. c. People being offered very low wages and poor working conditions because the market will bear those conditions. d. Children working for their family businesses doing manual labor that is legal under exceptions to the child labor laws.