Certified Materials and Resource Professional Practice

1 / 400

What does the Robertson-Patman Act primarily prohibit?

Unfair competition practices

Price discrimination

The Robertson-Patman Act primarily prohibits price discrimination, which refers to the practice where a seller charges different prices to different buyers for the same product, assuming the differences are not justified by cost differences, market conditions, or other legitimate criteria. This act was established to protect small businesses from being unfairly disadvantaged by larger competitors who can leverage their buying power to negotiate lower prices and then pass those savings onto select customers, effectively squeezing out competition.

By addressing price discrimination, the act helps ensure a level playing field in the marketplace. It aims to promote fair competition by requiring that pricing practices are consistent among buyers purchasing similar quantities of goods for similar uses. It also prevents companies from engaging in practices that could lead to monopolistic behaviors or reduce competition among market players.

The other options, while relevant to various aspects of business law and ethical practices, do not accurately capture the main focus of the Robertson-Patman Act. The act specifically targets pricing policies rather than unfair competition in general, employee-based discrimination, or the safety of product sales.

Get further explanation with Examzify DeepDiveBeta

Employee discrimination

Sale of unsafe products

Next Question
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy