The A.G.Harding company has been charged with price discrimination under the federal Robinson-Patman Act.Which of the following would be the best defense against the charge?
A)The price differential is justified as they do not exceed the cost differences resulting from selling to various classes of buyers.
B)The price differential is justified as it reflects the efficiency of its sales personnel.
C)The price differential is justified because the company is a leader in the specific product market.
D)The price differential is justified as the company's products comply with the ISO standards.

Question

Quizplus · Accepted Answer

The best defense against the charge of price discrimination under the federal Robinson-Patman Act is to demonstrate that the price differential is justified as it does not exceed the cost differences resulting from selling to various classes of buyers. This is the price-cost justification defense, which is recognized by the Act as a valid defense for price discrimination. The other options, such as efficiency of sales personnel, company leadership in the market, or product compliance with ISO standards, are not recognized as valid defenses under the Act.

The AGHarding Company Has Been Charged with Price Discrimination Under the the Federal