Question

Taymen Inc., a furniture manufacturer based in Arizona, has tie-ups with raw material suppliers and shipping companies who provide Taymen a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Taymen charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice? (A) Robinson-Patman Act (B) Sherman Antitrust Ac (C) Clayton Antitrust Act

Answer 1

Answer: The Robinson–Patman Act of 1936 prohibits this practice where , Taymen charges more for its products on the West Coast than in other parts of the United States.

The Robinson–Patman Act of 1936 forbids anti-competitive practices by producers, such as price discrimination.

Therefore, if Taymen charges more for its products on the West Coast than in other parts of the United States. It is violating the Robinson–Patman Act of 1936.