Marketing Final Exam

Airfreight price fixing this means the companies a

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Unformatted text preview: a class-action lawsuit over allegations of airfreight price fixing. This means the companies: a. tried to charge fees for airfreight that were below costs b. charged customers different amounts for the same shipments c. agreed on the price they would charge customers for airfreight d. used uniform geographic pricing e. created an artificial demand for shipping ANS: C Price fixing is an agreement between two or more firms on the price they will charge for a product. PTS: 1 REF: 323 Thinking KEY: CB&E Model Pricing OBJ: 20-2 TOP: AACSB Reflective MSC: BLOOMS Application 23. South Africa’s Competition Commission accused South African Airways of conspiring with its partner, Germany’s Lufthansa, to set prices on flights between Cape Town, Johannesburg, and Frankfurt. As a result, the two airlines were charged with: a. price discrimination b. price fixing c. bait pricing d. e. unfair trade practices channel control pricing tactics ANS: B Price fixing is an agreement between two or more firms on the price they will charge for a product. PTS: 1 REF: 323 Thinking KEY: CB&E Model Pricing OBJ: 20-2 TOP: AACSB Reflective MSC: BLOOMS Application 24. Which of the following prohibits any firm from selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition? a. Sherman Act b. Federal Trade Commission Act c. Food and Drug Administration Act d. Anti-Discrimination Act e. Robinson-Patman Act ANS: E The Robinson-Patman Act also makes it illegal for a seller to offer two buyers different supplementary services and for buyers to use their purchasing power to force sellers into granting discriminatory prices or services. PTS: 1 REF: 323 Thinking KEY: CB&E Model Pricing OBJ: 20-2 TOP: AACSB Reflective MSC: BLOOMS Comprehension 25. Acme Lawnmowers sells its mowers to retailers at different prices, depending on whether they are independent stores or members of a national chain. It uses: a. unfair trade practices b. price fixing c. price discrimination d. predatory pricing e. bait pricing ANS: C Price discrimination occurs when sellers charge different customers different prices for the same products. PTS: 1 REF: 323 Thinking KEY: CB&E Model Pricing OBJ: 20-2 TOP: AACSB Reflective MSC: BLOOMS Application 26. All of the following elements must be present for a pricing practice to be considered discriminatory under the Robinson-Patman Act EXCEPT: a. The seller must charge different prices to different customers for the same product. b. The seller must make two or more actual sales c. d. e. within a reasonably short time. The transaction must occur in interstate commerce. The products sold must not be commodities. There must be significant competitive injury. ANS: D The products sold must be commodities or other tangible goods. PTS: 1 REF: 323 Thinking KEY: CB&E Model Pricing OBJ: 20-2 TOP: AACSB Reflective MS...
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