Which of the following would be illegal according to the Robinson-Patman Act
A)"Party Packers" getting 10cents off every pack of ribbon they buy after 1000 units
B)"Sideline Superstore" receiving 50 cents off a crate of strawberries since it buys from many other suppliers
C)"Sam's Sandwiches" receiving 5 cents off per pound of cheese,since they are closer to the warehouse of the supplier
D)None of the above

Question

​Which of the following would be illegal according to the Robinson-Patman Act
A)​"Party Packers" getting 10cents off every pack of ribbon they buy after 1000 units
B)"Sideline Superstore" receiving 50 cents off a crate of strawberries since it buys from many other suppliers
C)"Sam's Sandwiches" receiving 5 cents off per pound of cheese,since they are closer to the warehouse of the supplier
D)​None of the above

Quizplus · Accepted Answer

The Robinson-Patman Act prohibits price discrimination where discounts are given to different customers for the same products in the same quantities without any cost justification. In this scenario, "Party Packers" are getting a discount after buying a specific quantity, which is an allowable form of volume discount. However, "Sideline Superstore" and "Sam's Sandwiches" are getting discounts for reasons unrelated to the cost of the product or the volume of their purchase, which would be illegal under Robinson-Patman Act.

​Which of the Following Would Be Illegal According to the Robinson-Patman

Which of the Following Would Be Illegal According to the Robinson-Patman