86 p 474 price fixing is not illegal unless it hurts

86.
(p. 474)
Price fixing is not illegal unless it hurts a competitor.
FALSE
AACSB: Ethics
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
17-88

Chapter 17 - Pricing Objectives and Policies
87.
(p. 474)
Price fixing is completely illegal in the United States.
TRUE
AACSB: Ethics
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
88.
(p. 476)
Price discrimination is illegal according to the provisions of the Robinson-Patman
Act.
TRUE
AACSB: Ethics
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
89.
(p. 476)
In the "Borden case," the U.S. Supreme Court ruled that a well-known label alone
makes a product different from a physically similar product with an unknown label.
FALSE
AACSB: Ethics
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
90.
(p. 476)
It is always illegal to sell the same products to different buyers at different prices,
even if the price differences are based on cost differences.
FALSE
AACSB: Ethics
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
17-89

Chapter 17 - Pricing Objectives and Policies
91.
(p. 476)
"Meeting competition" in "good faith" is allowed as a defense in price
discrimination situations.
TRUE
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
92.
(p. 476)
Under the Robinson-Patman Act, meeting a competitor's price is not permitted as a
defense in price discrimination cases.
FALSE
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
93.
(p. 476)
The Robinson-Patman Act permits promotion allowances only if they are made
available to all customers on "proportionately equal terms."
TRUE
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-06 understand the legality of price level and price flexibility policies.
17-90

Chapter 17 - Pricing Objectives and Policies
Multiple Choice Questions
94.
(p. 452)
Strategy planning for Price is concerned with:
A. to whom and when discounts and allowances will be given.
B. how transportation costs will be handled.
C. how flexible prices will be.
D. at what level prices will be set over the product life cycle.
E. All of the above.
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 17-01 understand how pricing objectives should guide strategy planning for pricing decisions.
95.
(p. 453)
_____ is what a customer must give up to get the benefits offered by the rest of a
firm's marketing mix.