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Great North Refining Distributes Its Products to Wholesalers in 24

Question 107

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Great North Refining distributes its products to wholesalers in 24 states.It usually charges the same prices to all its customers.In Kansas,where there are several competing distributors with overlapping geographical market areas,it has sold some products at lower prices to certain distributors in order to meet prices that a Kansas refiner has offered to these distributors.Whenever one of these distributors offers proof to Great North of a lower price on a similar product from the Kansas refiner,Great North meets the price of the Kansas refiner.Heartland Oil Distributors purchases products regularly from Great North Refining,but has not done business with the Kansas refinery for several years because of a previous dispute.Heartland has tried to get the same lower prices from Great North that the other Kansas distributors have been getting,but Great North has refused to give the lower price unless Heartland can submit a price quote from the Kansas refiner.Discuss Great North's liability for price discrimination.

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The lower price to Kansas distributors w...

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