Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain supermarkets. The chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores. True or False: The Robinson-Patman Act limits your ability to offer discounts to the chain supermarkets while leaving the price high for the smaller stores. True Fals

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11-07-2022
Business

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Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain supermarkets. The chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores. True or False: The Robinson-Patman Act limits your ability to offer discounts to the chain supermarkets while leaving the price high for the smaller stores. True Fals

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tutorconsortium203 tutorconsortium203 · Answer 1 · 2022-07-19T10:46:07+02:00

If the chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores then ;Yes, the "Robinson-Patman Act" limits your ability to offer discounts to the chain supermarkets while leaving the price high for the smaller stores.

What is Robinson-Patman Act?

The Robinson-Patman Act, officially known as the Anti-Price Discrimination Act of 1936 and passed in the United States in 1936, forbids large franchised corporations from discriminating against small businesses in their pricing, promotional benefits, and advertising.

The purpose of the Robinson-Patman Act are-

The Clayton Act, which forbids price discrimination that could significantly diminish competition or has the potential to create a monopoly, was amended by the Robinson-Patman Act.
This exception enables a seller acting in good faith to match a competitor's equally low price, service, or facility.

Therefore, according to the Robinson-Patman Act, it is forbidden for a buyer to profit from genuine price discrimination.

To know more about Robinson-Patman Act, here

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