Answer :
Answer:
A. Is always illegal.
Explanation:
The Robinson- Patman Act is a federal law that forbids anticompetitive practices, especially price discrimination. It was designed to protect small retail shops against big chain stores who fixed a minimum price for its products.
I hope this answer helps you.
According to the U.S Robinson-Patman Act of 1936, price discrimination is always illegal. U.S. Robinson-Patman Act of 1946 aims to prevent businesses from selling the same product to different people at different prices (price discrimination). This act was passed in 1936. However, this act strengthened the Clayton Act.
Explanation:
Furthermore, the US Robinson-Patman Act of 1936 was passed to reduce the failure rates of small businesses by defending them from the rivalry of large and growing chain stores. Large chain stores received price discounts from suppliers and in turn provide discounts to their customers. As a result, small businesses found it difficult to compete and many unsuccessful. This law forbids suppliers from contributing special discounts to large chain stores unless they also offer discounts to others. Many economists believe this act does not protect or strengthen competition but instead limits it. This act seems to prioritize certain competitor groups rather than about the competition process and they buy the public as a whole.
• In 1948, the Supreme Court supported the enforcement of the Federal Trade Commission’s enforcement of the Act in an important case of the Federal Trade Commission v. Morton Salt.
• In 1976, a dozen Texaco retailers in Spokane, Washington, sued Texaco and won $ 449,000 in compensation, which was tripled under antitrust law.
• In 1994, independent bookstores and the American Booksellers Association filed federal complaints in New York against the Houghton Mifflin Company, Penguin USA, St. Martin's Press and others, claiming that the defendants had violated the Robinson-Patman Act by offering promotional allowances that are more profitable and discounted prices to certain large national chains and club purchases.
LEARN MORE
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• Which antitrust legislation made price discrimination illegal? https://brainly.com/question/7001186
• Which antitrust act prohibits price fixing and other conspiracies and combinations that restrain trade and attempts to monopolize?? https://brainly.com/question/9667938
Keywords :
U.S Robinson-Patman Act of 1936, price discrimination
Subject : Social Studies
Class : 10-12
Sub-Chapter : Legal