The Robinson-Patman Act:
A) States that selling the same product to different consumers at different prices is always illegal.
B) Makes it illegal for a firm to offer quantity discounts.
C) Requires that promotional allowances be made available to all of a firm's customers on "proportionately equal" terms.
D) Requires that advertising allowances be made available to all buyers in equal dollar amounts.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act requires that promotional allowances be made available to all of a firm's customers on "proportionately equal" terms. This means that the same promotional allowance or incentive must be offered to all customers regardless of the quantity they purchase or their location. The act does not make it illegal to offer quantity discounts or to sell the same product to different consumers at different prices, as long as the discounts and prices are offered to all customers on equal terms. The act also does not require that advertising allowances be made available to all buyers in equal dollar amounts.