Under the Robinson-Patman Act, a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise. Volume discounts can be a violation of the Robinson-Patman because, according to the law:

Question

Quizplus · Accepted Answer

The Robinson-Patman Act aims to prevent price discrimination, which means charging different prices to different buyers for the same product or service without a legitimate reason. Volume discounts that give larger retailers an advantage over smaller retailers are considered discriminatory and therefore violate the act. This is because such discounts could stifle competition and prevent smaller retailers from being able to offer competitive prices to consumers. Thus, choice C is the best answer as it correctly identifies that price discounts give large volume retailers an advantage over small volume retailers, which is a violation of the Robinson-Patman Act.

Under the Robinson-Patman Act, a Producer May Not Be Able