The Robinson Patman Act aims to prevent what practice in business?

The Robinson Patman Act aims to prevent what practice in business?

• A. Price discrimination
• B. Unfair advertising
• C. Stock manipulation
• D. Predatory pricing

Answer: (A)

The Robinson-Patman Act specifically targets price discrimination in business practices. Enacted in 1936, this act aims to ensure fair competition by prohibiting suppliers from charging different prices to different purchasers for the same goods, unless adjustments are made based on cost differences, market conditions, or other valid reasons. This regulation is essential for maintaining equitable competitive conditions among businesses, especially small businesses that could be disadvantaged by larger firms that receive preferential pricing. By addressing issues of price discrimination, the act helps to protect both consumers and fair market competition. The other options involve various unethical business practices but are not the focus of the Robinson-Patman Act. Unfair advertising, stock manipulation, and predatory pricing each have their separate regulations and implications but are not directly addressed by this particular legislation.

The Robinson-Patman Act specifically targets price discrimination in business practices. Enacted in 1936, this act aims to ensure fair competition by prohibiting suppliers from charging different prices to different purchasers for the same goods, unless adjustments are made based on cost differences, market conditions, or other valid reasons. This regulation is essential for maintaining equitable competitive conditions among businesses, especially small businesses that could be disadvantaged by larger firms that receive preferential pricing. By addressing issues of price discrimination, the act helps to protect both consumers and fair market competition.

The other options involve various unethical business practices but are not the focus of the Robinson-Patman Act. Unfair advertising, stock manipulation, and predatory pricing each have their separate regulations and implications but are not directly addressed by this particular legislation.