Masson Supply sells hinges to retail outlets for $1.20. If Rorsch Ltd. approaches Strunk Hardware, one of Masson's customers, and offers to sell a comparable hinge for $1.10:
A) Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers.
B) Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act.
C) Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act.
D) Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges.

Question

Quizplus · Accepted Answer

The Answer of Masson Supply sells hinges to retail outlets for $1.20. If Rorsch Ltd. approaches Strunk Hardware, one of Masson's customers, and offers to sell a comparable hinge for $1.10:
A) Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers.
B) Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act.
C) Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act.
D) Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges.

Masson Supply Sells Hinges to Retail Outlets for $1