A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?
A)Using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture,sale,or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers.
B)Using price differentials when price differences are given on the basis of other family businesses.
C)Using price differentials when charging different prices to different buyers for goods of like grade or quality.
D)Using price differentials when charging different prices on the basis of religious affiliation.
E)Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act allows for price differentials when they are based on differences in the cost of manufacturing, sale, or delivery resulting from different methods or quantities in which goods are sold or delivered to buyers. This means that companies can charge different prices to different customers as long as the price difference is based on a legitimate cost difference, such as quantity discounts or differences in shipping costs. The other options listed (B, C, D, and E) would not be permitted under the Robinson-Patman Act.

A Unique Feature of the Robinson-Patman Act Is That It