Twenty years after the Clayton Act,the growth of chain stores such as Sears led many to fear that retail chains presented a threat to smaller,independent retailers.The federal government enacted the __________ to make it unlawful to discriminate in prices charged to different purchasers of the same product,where the effect may substantially lessen competition or help to create a monopoly.
A) Robinson-Patman Act
B) Fair Trade Act
C) Clayton Act
D) Lanham Act
E) Unfair Practices Act

Question

Quizplus · Accepted Answer

The Robinson-Patman Act was enacted in response to the fear that retail chains would harm smaller, independent retailers. It made it illegal to discriminate in prices charged to different purchasers of the same product, which could lessen competition or create a monopoly. Therefore, the Robinson-Patman Act is the best choice. The Fair Trade Act is a separate law that allowed manufacturers to set minimum prices for their products, while the Clayton Act and Lanham Act were enacted earlier and dealt with different aspects of antitrust law. The Unfair Practices Act is not a recognized federal law.

Twenty Years After the Clayton Act,the Growth of Chain Stores