Summarize the provisions of the Clayton Act as amended by the Robinson-Patman Act
What will be an ideal response?
Section 2(a) of the Clayton Act prohibits discrimination in price by seller between two purchasers of a commodity of like grade and quality where effect may be to substantially lessen competition or tend to create a monopoly. The defense of cost justification or a good-faith attempt to meet equally low prices of competitors can be used.
Section 2(c) prohibits fictitious brokerage payments (or discounts where services not rendered). It has no defense.
Section 2(d) prohibits payments for promotions or allowances for promotional services by seller unless made available to all buyers on proportionately equal terms. The defense of meeting competition can be used.
Section 2(e) prohibits promotional services by seller unless provided to all buyers on proportionately equal terms. The defense of meeting competition for seller can be used.
Section 2(f) prohibits inducing to discriminate in price or knowingly receiving the benefits of such discrimination. The defense of cost justification can be used.
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A machine that was purchased for $120,000 has accumulated depreciation of $90,000. The business exchanges the machine for a new one. The new machine has a market value of $130,000, and the business pays $120,000 cash. Assume the exchange has commercial substance. This exchange results in a ________.
A) gain of $20,000 B) gain of $10,000 C) loss of $20,000 D) loss of $30,000
Which one of the following is NOT one of the four broad categories of service?
a. People processing b. Possession processing c. Mental stimulus processing d. Information processing e. Involvement processing