Question
Johnson Brothers, a furniture manufacturer based in South Carolina, has agreements with fow material suppliers and shipping companies who provide Johnson Brothers a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Johnson Brothers charges more for its products on the West Coast than in other parts of the United States. Which act prohibits this practice? Multiple Choice Credit Card Accountability. Responsibility, and Disclosure Act Telephone Consumer Protection Act Sherman Arthrat Act Robinson Patman Act Wheelertea Amendment
Answer
4.7
(213 Votes)
Uwenna
Professional · Tutor for 6 years
Answer
Robinson-Patman Act
Explanation
The Robinson-Patman Act is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination. This Act aims to protect small businesses and consumers by ensuring that sellers offer the same price terms to customers at a given level of trade. Given that Johnson Brothers charges different prices for the same products in different regions despite uniform costs, this practice falls under the purview of the Robinson-Patman Act.