A clothing manufacturer sells to 300 retail chains and boutiques within the United States.Since West Coast retailers have a more affluent clientele,they can command higher retail prices.This is likely to be considered illegal under the Clayton Act.

Question

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The Clayton Act prohibits price discrimination, which is the practice of selling the same product at different prices to different customers. In this case, the clothing manufacturer is selling the same product to different retailers at different prices based on the location of the retailer. This is likely to be considered illegal under the Clayton Act because it could harm competition by giving West Coast retailers an unfair advantage over East Coast retailers.

A Clothing Manufacturer Sells to 300 Retail Chains and Boutiques