Asked by
Yomira Pereyra
on Nov 21, 2024Verified
Is it a valid defense for a seller to engage in price discrimination in order to compete in good faith with another seller's low price?
A) No, that is not a defense, and the seller has violated the Clayton Act.
B) No, that is not a defense, and the seller has violated the Sherman Act.
C) Yes, that is a valid defense to price discrimination called the meeting-the-competition defense.
D) Yes, that is a valid defense to price discrimination called the legitimate-price-discrimination defense.
E) Yes, that is a valid defense to price discrimination called the meet-the-offense defense.
Price Discrimination
A selling strategy that charges customers different prices for the same product or service, not justified by differences in cost.
Clayton Act
A U.S. antitrust law aimed at promoting competition and preventing monopolies by addressing specific practices deemed harmful to competition.
Meeting-The-Competition Defense
A defense to the Clayton Act in which a firm engages in price discrimination to compete in good faith with another seller’s low price.
- Comprehend the lawful protections that can be employed to counter charges of breaching antitrust laws.
Verified Answer
TB
Learning Objectives
- Comprehend the lawful protections that can be employed to counter charges of breaching antitrust laws.