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Smith Brothers, a furniture manufacturer based in North Carolina, has tie-ups with raw material suppliers and shipping companies who provide Smith Brothers a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Smith Brothers charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice?

a. Sherman Antitrust Act
b. Wheeler-Lea Amendment
c. Credit Card Accountability, Responsibility, and Disclosure Act
d.Telephone Consumer Protection Act
e. Robinson-Patman Act

Sagot :

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Answer:

e. Robinson-Patman Act

Explanation:

Robinson-Patman Act is a federal law that aims to combat price discrimination by businesses. Companies are not allowed to supply goods at different prices in different locations.

The Act mostly applies to interstate trade and cooperatives are usually exempted.

In the given scenario Smith Brothers charges more for its products on the West Coast than in other parts of the United States. This is despite the fact that they get uniform cost of production across the country.

This is a violation of the Robinson-Patman Act

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