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Stitchwell Is an Apparel Manufacturer

Question 57

Multiple Choice

Stitchwell is an apparel manufacturer.Huge Mart,a wholesale dealer,is its largest customer.Huge Mart also owns Gorgeous,a department store chain that deals in apparels,shoes,and accessories.Stitchwell routinely offers "wholesaler special" discounts to Huge Mart and other wholesalers.Are these discounts illegal?


A) Yes,these discounts are per se illegal under Section 2(A) of the Robinson-Patman Act.
B) No,these discounts are not illegal because Stitchwell can legally set resale prices.
C) Yes,these discounts will be deemed illegal if Huge Mart passes them on to Gorgeous customers.
D) No,these discounts are not illegal considering they are provided only for wholesalers.

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