Final answer:
The Robinson-Patman Act prohibits price discrimination in sales and aims to promote fair competition in the marketplace.
Step-by-step explanation:
The Robinson-Patman Act is a law in the United States that prohibits price discrimination in sales to wholesalers, retailers, or other producers. It aims to prevent unfair competition and promote a level playing field in the marketplace.
Under the act, companies are not allowed to offer special discounts to some consumers while denying them to others. This helps protect smaller businesses from being disadvantaged by larger companies that may have more bargaining power.
For example, if a company sells a product to a large retailer at a lower price than to a smaller retailer, it would be considered price discrimination and a violation of the Robinson-Patman Act.