Phillip esten operates a mail store in which he

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South-Western Federal Taxation 2020: Comprehensive
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Chapter 5 / Exercise 41
South-Western Federal Taxation 2020: Comprehensive
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45.Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment, delivering items to overnight services, and a fax machine. Esten charges $4.00 for deliveries for one-time customers and $2.00 for deliveries for his account customers. Esten's prices:a.are a violation of the Robinson-Patman Act.b.*are not covered under the Robinson-Patman Act.c.constitute price discrimination.d.none of the aboveANS:B
PTS:1NAT:AACSB: AnalyticTOP:price discrimination46.Which of the following is notan exemption to the Robinson-Patman Act?
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South-Western Federal Taxation 2020: Comprehensive
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Chapter 5 / Exercise 41
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
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PTS:1NAT:AACSB: AnalyticTOP:Robinson-Patman Act47.Vertical mergers are:
PTS:1NAT:AACSB: AnalyticTOP:vertical merger48.Fair trade contracts:
PTS:1NAT:AACSB: AnalyticTOP:fair trade49.Coca-Cola, Inc. and PepsiCo, Inc. have only one distributor each in the Phoenix area. The Phoenix market is an intensely competitive soft drink market with prices being among the lowest in the nation. A local restaurateur has requested a dealership from PepsiCo and has been denied. He claims an antitrust violation. Which of the following statements is true?a.The denial of the distributorship to someone who can afford it is anticompetitive and is a per se violation.b.*The denial is justifiable given the level of interbrand competition.c.The denial is an example of resale price maintenance.d.none of the aboveANS:B
PTS:1NAT:AACSB: AnalyticTOP:sole outlets50.Homer, Inc. is the western regional distributor for Plato Ice Cream. Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon. Homer says the Utah ice cream market is much
more competitive and he has to meet the market. Utah competitors charge between $2.50 and $2.75 per half gallon. Homer:
PTS:1NAT:AACSB: AnalyticTOP:price discrimination

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