This preview shows page 1. Sign up to view the full content.
Unformatted text preview: oration’s pink insulation.31 Another recent addition to trademark law is the Federal Dilution Act (1995),
which is used to prevent someone from using a trademark on a noncompeting product
(e.g., “Cadillac” brushes).32 Pricing-Related Legislation
The pricing component of the marketing mix is the focus of regulation from two perspectives: price fixing and price discounting. Although the Sherman Act did not outlaw
price fixing, the courts view this behavior as per se illegal (per se means “through or
of itself”), which means the courts see price fixing itself as illegal.
Certain forms of price discounting are allowed. Quantity discounts are acceptable;
that is, buyers can be charged different prices for a product provided there are differences in manufacturing or delivery costs. Promotional allowances or services may be
given to buyers on an equal basis proportionate to volume purchased. Also, a firm can
meet a competitor’s price “in good faith.” Legal and ethical aspects of pricing are covered in more detail in Chapter 12. 72 ker81063_ch03_058-077.indd Page 73 8/13/08 12:57:16 AM user
ker81063_ch03_058-077.indd Page 73 8/13/08 12:57:16 AM user /Volumes/203/MHBR060/ker10ch03
/Volumes/203/MHBR060/ker10ch03 Distribution-Related Legi...
View Full Document
This document was uploaded on 01/30/2014.
- Spring '14