Bus. Law Final Exam

Nature of Business Ethics

-The standards that guide the behavior of individuals and groups -Most basic ethics become laws & regulations -Ethics should go beyond laws -Baseline of least acceptable behavior EX: ENRON; Sarbans-Oxly Act

Unfair and Deceptive Trade Practices - Examples

"Bait and Switch" California White Pine not allowed even through trade term -FTC went to California and said they are advertising they are selling white pine and constructional lumber and they said yes. FTC said so show us some of this white pine constructional lumber, and he said those are yellow. FTC said how can you call them white pine if they are yellow pine. Parker Pen guaranteed for life (Of Pen) -Parker Pens are expensive & people give them as gifts. Also says on it, "Guaranteed for Life." Someone was using the pen and it broke. So the took it back and said its broken, and I need a new one since its for life. They said that it's not guaranteed for your life, but for the life of the pen. FTC said that is deceptive.

Saying Switzer Says to Remember :)

"might substantially lessen competition" or "tend to create a monopoly"

Treble Damages - Sherman Act

**Competitors -Sue competitors in a restraint to trade, so if you catch them in the act, sue them, get damages x3. Treble damage reward **Customers -Catch their suppliers in price fixing, they sue and prove damages, and get 3x whatever they charged. **State Attorney General -Every state has an attorney general and this person represents everyone in their own state. -When they catch people taking advantage for residency or in restraint to trade. The Attorney General brings in a treble damage suit and

Bait and Switch

- not legal and deceptive -Run an ad for an item at a low obvious price - Bait -When people come in to buy it the seller says sorry we don't have it, we sold out. But we have another one here, it's better, but its more expensive. - Switch -EX: Sears advertised a washing machine @ a really low price. Anybody who a washing machine that was slightly broken people really wanted it since it was low price. They would come to Sears and say this is what I want. & they always had the washing machine there & never ran out. But, the sales people would talk bad about the washer & then show them a couple better washing machines. Engage in a smaller form of bait and switch and is deceptive to the consumer due to discouraging them from buying the one they advertised.

Under Section 7 of the Clayton Act - what does the government have to prove in order to stop a merge?

- that there has been a merger between two corporations engaged in commerce - that the effect of merger may be substantially to lessen competition or tent to create a monopoly in any section of the country

Classification of Ethical Issues

-An ethical issue is a problem, situation, or opportunity requiring an individual, group, or organizations to choose among several actions that must be evaluated as right or wrong, ethical or unethical. -EX: Conflict of Interest A conflict of interest exists when an individual must choose whether to advance his or her own interests, those of his or her organization, or those of some other group. Should I serve myself or serve my company. Conflict; can't do both. EX: purchasing manager; buying parts and supplies for the employer company. Usually several suppliers they can go to; competitive pricing. One supplier says, "If you buy from me instead of others I'll give you tickets to bronco's game etc." Bribe. "Spiff"

What is a conglomerate merger?

-Bringing in companies together, each company is unrelated with the others, each in different businesses. -Way to build large company.

Purpose of Antitrust Laws

-Encourage a large number of competitors -Prevent monopoly (One company) -Provide workable competition: recognizing the limits of what is workable. -OLIGOPOLY: more than one, but not very many. 2 to 3 competitors. -Prevent accumulation of economic power -Ethical Issues: anyone can be as rich as they want, as long as they do it legally.

What is Corrective Advertising?

-FTC has charged that a company that is deceiving consumers w/ marketing or advertisements that the only way to correct it is to reverse it and tell consumers that you have deceived them. -Companies have to spend the same amount of money spent on deception to reverse it. -EX: Listerine Mouthwash- ran a 10-million-dollar campaign saying if your gargle twice a day and you will prevent the common cold. FTC said that is deceptive and you will correct the deception that you have put in mind of consumers. Spend 10 million dollars correcting the deceptive ads.

Ethical Climate - Group Think

-Going along with group decisions even when those decisions run counter to an employee's own values. -Well then you aren't a team player if you don't go along with us, and that's not a good thing. No one wants to be accused for not being a team player; other teams would ask you to be on other teams.

Sherman Act - Pleas

-Guilty -Not Guilty - and jury convicts, then that conviction will be added to civil suit. -Nolo Contendere - no context. I'm not saying I'm guilty, or not guilty. Just willing to accept the slap on the wrist. -Plea of Guilt or a conviction are prima facie cases for treble damages

What is Advertising Substantiation?

-If you make a claim you have to substantiate your claim. -if you say our laundry detergent makes sheets whiter - then you have to run the sheets w/ two different detergents and show that it makes it whiter.

FTC Sanctions

-Injunction "stop order" - have to go to court & have to show case to judge and then judge orders an injunction -FTC has a Cease and Desist Order -Nobody overseas the FTC's cease and desist order unlike an injunction. -Daily Fine - FTC determines money - fine is every day until you cease and desist from whatever they tell you to do. -Consent Order/ Settlement - administrative agencies negotiate a settlement w/ FTC. Called a "Consent Order." Don't want to litigate it. Contract between FTC & Company -EX: Facebook 2011: Facebook agreed to submit to an independent privacy audit every 2 year. If Facebook violates consent order, they will be fined 60,000 dollars per day.

Injunction - Sherman Act

-Injunction: Stop order, something someone cannot do. -Divestiture: -Full: break things up entirely, pieces. -Partial: "can't acquire that company, until you sell the other companies you own."

Vertical Mergers

-Merger among two companies that are in the same chain of supply or distribution --EX: Reynolds Aluminum Case: Acquire Arrow with Forest Foil -Both in aluminum -Where vertical merger would raise barriers to entry or disadvantage other firms -"I'm not going to want to enter if arrow is owned by Reynolds." -Probable Competitive Event -Controlling 10% of the respective market -Government decides if they want to do anything.

What does Section 7 of the Clayton Act entail?

-Ownership of stock in competing corporations: i.e. mergers, consolidations, acquisitions EX: AT&T Trying to merge with another company - government says no. -Government can block a merger -Mergers -No company may acquire the stock or assets of another if: Substantially lessen competition or tend to create a monopoly.

Ethical Climate (Corporate Culture)

-Part of a corporation culture that relates to an organizations expectation about appropriate conduct that focuses specifically on issues of right and wrong, -The chief executive officer established the ethical tone for the entire firm -Executive leadership helps determine the ethical value system of the firm. -EX: ENRON; all thought it was okay because leadership was doing it.

Two basic provisions of Sherman Act

-Prevent Monopoly -Illegally enter into a contract in restraint trade --Are where two or more companies get together to try to prevent any other company trying to come in create competition.

FTC vs. Bordon Case

-Selling Evaporated milk under different label at different prices (Same milk: Borden was charged more than the generic label.) They have carried the entire market with high end and low end. -May not charge different prices unless cost is justified - could include quality control o EX: Fort Collins: 20.00, 22.00, 23.00 New York: 22.00, 22.00, 22.00 20 + Shipping; not price discrimination Both 22 - then price discrimination

Chicken Delight Case - "Full-Line Forcing"

-Subjected to full line forcing -A franchisee said, "Were overpaying for these utensils." -Priced it and found out that they could get it for half the price that they were being charged for. -Corporate went to all the franchisee and said they are all in breach of contract. So we are taking franchise. -They all got together and filed a suit against chicken delight for tying contract under clayton act. -Now they don't need to buy everything from one place - no more full line forcing

Reynolds (Arrow) vs. FTC Case

-Two ways you can buy aluminum: ingots; going to melt it down and poor it into molds. Or foil; enormous and in rolls, really heavy, only can fit 3 of them on semi-truck. -Foil Converter companies (2), then convert it into another product by using pressure rollers and heat and make it thinner until its kitchen aluminum foil etc. -Within the 200 foil converter companies, there were 8 that focused on florist foil; wrap around plant, around Christmas time. -Arrow Aluminum had 1/3 of the florist foil business Said they cannot acquire arrow due to lessen competition of monopoly -There are 200 foil converted companies, arrow is only 1 on of the 200, how are we lessen competition or monopoly -Government said there only 8 flouriest foil companies not 200 so you are lessening competition of tend to create monopoly. -Narrow in line of commerce, so we can find true impact.

What is a tying contract?

-Unlawful to see of lease a product tied to another where effect may be to "Substantially lessen competition" or "tend to create a monopoly" -Generally unlawful when one of the products is patented -Government has given a 20-year monopoly - they can't buy it from anyone else, only from you -This could lessen competition or create a monopoly

Horizontal Merge - Concentrate Market Share

-Where concentrate market share --Concentrate: over time have the number of competitor companies in this field of business been declining? -If it has been: market concentration - they will become more concentrate since there are few competitors -The government will be even more sensitive to challenging a merge if it's been contracting

Advertising Substantiation - Mock Up

-representation of a product but it's not actually the product. -EX: Campbell Soup makes alphabet soup - and the letters fall to the bottom & you can't see them. In their ad - they took a soup bowl w/ clear glass marbles - then took the soup and pored it over the marbles and made the letters look like they were on top of the broth. FTC said, you can't do that - it's not the way it really looks. You made a Mock Up and made it look like the actual product but it isn't. --Can use a Mock Up if you say this isn't the actual product - only as background but never to say it's the proof of the product.

Philadelphia National Bank Case

2 banks in one metro area that were trying to merge. -"We are actually increasing competition, not decreasing. -"We don't have a bank in Philadelphia that is bug enough to compete with the bug banks in New York and Boston, so we will be increasing competition. -Government: No, that's not appropriate way in determining that. Its where is the customer impact and where are they? People impacted by P were the people who lived in philly metro area. -Government won; the appropriate geographic area to look at is where are the customers that will be affected and mattered.

FTC & Deceptive Trade Practices

Ads or Marketing Campaigns that are there to deceive the buyer/consumer "Regular Price" or manufacturers list price may only be used if it in fact regularly sells at that price EX: FTC v. Mary Carter Paint EX: Giant Foods: Customary Price

Labor Unions are: A: Subject to Sherman Act Restriction B: Completely exempt from the antitrust laws C: Completely within the scope of the antitrust laws D: Subject to Clayton Act restriction E: None of the above

B: Completely exempt from the antitrust laws Antitrust Laws do NOT apply to labor unions

Which of the following practices is illegal per se? A: Contract in restraint of trade B: Price Fixing C: Conglomerate Merger D: Tying Contract E: Two of the above

B: Price Fixing

Which of the following are employee practices defined by the Wagner Act to be unfair to labor? A: Create a company union B: Yellow Dog Contract C: Refusing to bargain D: Two of the above E: Three of the above

B: Yellow Dog Contract

Clayton Act Section 7 - Geographic Market

Cannot merge if: Might substantially lessen competition Competition or tend to create a monopoly

What is a tying contract?

Clayton Act (Section3): Unlawful to lease a product tied to another where effect may be to "Substantially lessen competition" or "tend to create a monopoly" Generally unlawful when one of the products is patented EX: Government has given a 20-year monopoly - they can't buy it from anyone else, only from you. This could lessen competition or create a monopoly

What act exempted unions from the antitrust laws?

Clayton Act - 1914 -Easier to prove a violation - easier to win a case -Sanctions: injunction, treble damages, not criminal -Federal Trade Commission may enforce as well as the Justice Department -Antitrust Laws do NOT apply to labor unions

An interlocking directorate is specifically prohibited by what act?

Clayton Act Section 8: -May not be on the board of two corporations if one has capital in excess of 1,000,000; if are or have competitors -Cannot be on board if two different companies are competitors. -Each company has a board of director meetings, problem that arose, one person was sitting on two boards to competing companies; that person could carry important information from one to another and there was no way the government could detect it.

The major defenses to a charge of price discrimination are what?

Cost Changing Conditions Good Faith Meets Competition

What are the legal sanctions provided for a violation of the Sherman Act?

Criminal Fine or Punishment Injunction Treble Damages

Which of the following would be considered a tying contract? A: Require the purchase of salt with the purchase of a salt processor B: Require the purchase of a motorcycle helmet with any motorcycle purchase. C: Require the purchase of computer paper with the lease of a computer D: Two of the above

D: Two of the above -Require the purchase of salt with the purchase of a salt processor -Require the purchase of computer paper with the lease of a computer Unlawful to see of lease a product tied to another where effect may be to "Substantially lessen competition" or "tend to create a monopoly"

Advertising Substantiation - Celebrity Claims

EX: -Tropicana Orange Juice hired a supermodel and she would drink orange juice on TV. She would say, "I drink Tropicana Orange Juice Every Day." People think it would make them look like her. FTC asks the supermodel if she has been drinking it every day & she says no way, there's too much acid. -New Rule: Celebrities cannot make claim if you do not use it for a good amount of time.

What does the FTC Regulate?

Enforces Section 5 of the Federal Trade Commission Act Stop Violation in its "incipiency" Goes back further in time to stop companies before they have done anything Companies fear the FTC more than the IRS - FTC has further reaching power

"Bait and Switch" refers to an advertisement that fails to disclose that a "mock-up" is used - true or false

False - "Bait and Switch" - Run an ad for an item at a low obvious price - Bait When people come in to buy it the seller says sorry we don't have it, we sold out. But we have another one here, it's better, but its more expensive. - Switch Mock-Up - representation of a product but it's not actually the product

A charge of price fixing can be defended against if the prices are not unreasonable under the "Rule of Reason" defense - true or false.

False - Collusion of money sellers when they all agree to charge the same price. -Communication - two or more sellers are communicating with each other (collusion) and agree on what the price will be -Price Fixing is illegal per se (always) -EX: Even if they price fix they look like they dropped price, it doesn't matter because what might look beneficial today might not be beneficial tomorrow. That's why it's always illegal. You don't know what future holds.

A "consent order" means that a business has the FTC consent to engage in sales - true or false

False - Consent Order/ Settlement - administrative agencies negotiate a settlement w/ FTC. Called a "Consent Order." Don't want to litigate it. Contract between FTC & Company EX: Facebook agreed to submit to an independent privacy audit every 2 year. If Facebook violates consent order, they will be fined 60,000 dollars per day.

A charge of price fixing can be defended against if the prices are lower than they were before - true or false

False - Illegal per se, whether prices are fair and reasonable, or not. -Illegal per se: always. "Price Fixing is ALWAYS illegal."

There was a merger between the second largest can producer and the third largest glass jar producer. They were 4th and 6th in the market embracing glass and metal containers. Glass containers do not generally compete with can containers. The merger is not a violation of Section 7 of the Clayton Act - True or False.

False - Substantially lessen competition or tend to create a monopoly. The companies are both too large to merge (be over 10%) & the companies are too related in product similarities. EX: Reynolds v. FTC & Philadelphia National Bank

Tying Contracts are illegal per se - True or False.

False - it can be illegal per se, but it can also be illegal under the rule of reason, but sometimes they are not illegal at all. So they are not always illegal per se.

the passage of time per se is no barrier to a court requiring the divesture of stock acquired in (word) Section 7 of the Clayton Act and the violations are to be measured at time of sold rather than at time of the acquisition - true or false

False - it is during the time of acquisition rather than the time that it is sold

The agency that can enter a "cease and desist" order is ?

Federal Trade Commission

What is comparative advertising?

Head to head comparison from one product to a competitor's product EX: Started w/ the French fries wars - Burger King - brought together a focus group of people w/ McDonalds fries & Burger King fries. Then they voted -FTC likes this type of advertising over puffing because the consumer learns more about the product from these.

What is Complementary Adjacently?

If you put products that complement each other next to each other, they will sell more. -EXAMPLE: P&G: we control eye level shelving, so why don't we buy Clorox bleach, and after we buy that, we will move it to eye level and put it next to the laundry detergent and soaps. -Government said no due to: -Clorox had 30% of bleach market - way over 10% -Soap and Bleach Merger - created a new merger category:

International Salt Example - Tying Contract

Lease salt processing machines only if lessee would purchase salt from international salt company -Salt needs to be bleached to be made white and needs to be processed into consistent exact size grain of salt. -New machine made that can do all that, it was patented and it was a product everyone wanted. -International said, "We won't let you buy a machine, unless you use our salt from our salt mines." -This lessened competition

Ethical Climate - Opportunity

Organizational culture may foster conditions that either hinder or permit misconduct -Opportunity is a set of conditions that limit barriers or provide rewards. -A company should be set up in a way that people aren't temped with unethical decisions or behaviors. The opportunity should not be in front of people. -"Internal Controls." - split up jobs so there are too many people involved and they can't do it alone,

What are the two basic provisions for the Sherman Act?

Prevent Monopoly Illegally enter into a contact in restraint trade

What is the Robinson-Patman Act?

Price Discrimination Congress first wrote price discrimination act - people looked at it and didn't know what they were trying to say, didn't understand it. Wasn't well written They fixed price discrimination by calling another act - Robertson Patterson Act - this is where price discrimination is. Do not look at Clayton Act.

What is Product Extension Merger?

Products that are in the same "field" -Soap and Bleach used together. -EX: Can't just buy Clorox - but you can make your own bleach and start your own bleach product. -New Competitor in the bleach business and compete with Clorox and everyone else.

Ethical Issues of the Robinson-Patman Act?

Prohibited the practices of A&P and others in forcing competitors out of business with legal practices Gave equal opportunity to smaller retailers

Criminal Fine or Punishment - Sherman Act

Punishments can include: 1,000,000 fine: Corporation 100,000 fine: Individual 3 Years in Prison

What is full-line forcing under tying contracts?

Requires purchaser to purchase full time products in order to get major product. -Forks, spoons, straws etc.

The Act that prohibits tying contracts is what?

Section 3 of the Clayton Act

Difference Between Sherman Act and Clayton Act

Sherman Act - 1890 o Must show ACTUAL Monopoly o Not Very Specific o Applied to Labor Unions Clayton Act - 1914 o Easier to prove a violation - easier to win a case o Sanctions: injunction, treble damages, not criminal o Federal Trade Commission may enforce as well as the Justice Department o Antitrust Laws do NOT apply to labor unions o More Specific in defining practices

A mock-up is not allowed to be used in an advertisement if...?

The test is not conducted as claimed & It is represented as actual proof of the claim.

Mergers are generally attacked under Section 7 of the Clayton Act rather than under the Sherman Act - true or false.

True - Clayton Act Section 7- Ownership of stock in competing corporations: i.e. mergers, consolidations, acquisitions -No company may acquire the stock or assets of another if: Substantially lessen competition or tend to create a monopoly. Sherman Act - Two Basic Provisions -Prevent Monopoly -Illegally enter into a contract in restraint trade --Are where two or more companies get together to try to prevent any other company trying to come in create competition.

The FTC uses a test for judging the credibility of an advertisement called the "fool test" - true or false

True - EXAMPLE: 4 Wheel Drive Vehicle -In ad - shows the trooper going up a vertical wall and then parking on the top of the mountain. -A Trooper cannot actually do that - but the FTC allows it because not most intelligent people would believe it & FTC job is to protect all of the fools that would be deceived by deceptive advertising. -If a person believes that a Trooper can go vertical - then they are crazy and we cannot help crazy people. -FTC uses "Fool" test but not "Crazy Man" test.

The federal trade commission act was passed the same year as Clayton Act - true or false

True - 1914

It is a deceptive practice for a seller to state falsely that a product originally sells for an inflated price but that it is being offered at a special reduced price even if the offered price represents the actual value of the product and the purchaser is receiving its money worth - true or false

True - Ads or Marketing Campaigns that are there to deceive the buyer/consumer "Regular Price" or manufacturers list price may only be used if it in fact regularly sells at that price -EX: FTC v. Mary Carter Paint -EX: Giant Foods: Customary Price

A pure conglomerate merger is one in which there is no economic relationship between the merging and merged firms - true or false

True - Bringing in companies together, each company is unrelated with the others, each in different businesses. -Way to build large company.

Persons injured in a violation of the antitrust laws may recover three times their actual damages in an action against violating corporation - true or false

True - Customers that catch their suppliers in price fixing, they sue and prove damages, and get 3x whatever they charged.

In many Section 7 Clayton Act Cases, the definition of the geographic market may decide the outcome of a case - true or false

True - EX: Might substantially lessen competition -Competition or tend to create a monopoly EX: CASE: PHILADELPHIA NATIONAL BANK -2 banks in one metro area that were trying to merge. -"We are actually increasing competition, not decreasing. -"We don't have a bank in Philadelphia that is big enough to compete with the bug banks in New York and Boston, so we will be increasing competition. -Government: No, that's not appropriate way in determining that. Its where is the customer impact and where are they? People impacted by P were the people who lived in philly metro area. -Government won; the appropriate geographic area to look at is where are the customers that will be affected and mattered.

The FTC can stop an illegal business practice in its incipiency. - true or false

True - Enforces Section 5 of the Federal Trade Commission Act -Stop Violation in its "incipiency" -Goes back further in time to stop companies before they have done anything -Companies fear the FTC more than the IRS - FTC has further reaching power

A "cease and desist" order has the same effect as an injunction - true or false

True - Injunction "stop order" - have to go to court & have to show case to judge and then judge orders an injunction -FTC has a Cease and Desist Order -Nobody overseas the FTC's cease and desist order unlike an injunction. -Daily Fine - FTC determines money - fine is every day until you cease and desist from whatever they tell you to do. -Consent Order/ Settlement - administrative agencies negotiate a settlement w/ FTC. Called a "Consent Order." Don't want to litigate it. Contract between FTC & Company

Interlocking directorates are attacked under Section 8 of the Clayton act rather than under the Sherman Act - True or False

True - May not be on the board of two corporations if one has capital in excess of 1,000,000; if are or have competitors -Cannot be on board if two different companies are competitors. -Each company has a board of director meetings, problem that arose, one person was sitting on two boards to competing companies; that person could carry important information from one to another and there was no way the government could detect it. EX: Sears and Goodrich

The Robinson-Patman act makes it unlawful for a purchaser to receive the benefit of an actual discrimination in price? True or False.

True - Price Discrimination Congress first wrote price discrimination act - people looked at it and didn't know what they were trying to say, didn't understand it. Wasn't well written They fixed price discrimination by calling another act - Robertson Patterson Act - this is where price discrimination is. Do not look at Clayton Act.

The FTC may issue regulations for an entire industry - True or False.

True - So Powerful - they can take on an entire industry, not just one company. EX: Tabaco: FTC issues trade regulation rules regarding an entire industry: health hazard warning for cigarettes; leak- roof battery Reason Warning Label: Consent Order w/ FTC. EX: Battery Industry - take on entire industry not just one company. Look for Key words that can overstate products & may not be true. EX: "Leak Proof."

In a highly concentrated industry, a horizontal acquisition by a larger company will usually be held to violate Section 7 of the Clayton Act - true or false

True - Two competitors merging together -Size of Market Shares that companies will have after the merger -What will market share be - after they merge if they have 10% or more of the market, then the government will investigate.

If a business agrees to go along with an FTC demand, it will sign a "consent order." - true or false

True - administrative agencies negotiate a settlement w/ FTC. Called a "Consent Order." Don't want to litigate it. Contract between FTC & Company

Six major film distributors when selling films to television stations have a block-booking requirement. Black-booking is the conditioning of a sale of license of a desirable film upon purchase by the stations of package containing one or more inferior films. Such contracts may be enjoined as violations of the antitrust laws. - True or False

True - based on tying contracts: Unlawful to see of lease a product tied to another where effect may be to "Substantially lessen competition" or "tend to create a monopoly" EX: International Salt Company

That statute that contributed the most union growth is..?

Wagner Act

What are the merger guidelines?

Where merger involves potential entrants -Creates danger of reciprocal buying -Every company in the big conglomerate, everything they need in supplies etc. they would buy from a company that is in the same conglomerate as well as with other companies. Many people are buying from one

What does it mean to illegally enter into a contract in restraint trade?

Where two or more companies get together to try to prevent any other company trying to come in create competition.

The difference between mediation and arbitration is that...?

With one, a decision is rendered by a disinterested party; with the other, no decision is rendered by a disinterested party -Arbitrator renders a decision

Price Fixing define

agreeing with someone else to set prices is a contract in restraint to trade.

Price discrimination is defined as...?

charging two people different prices for the same product

Sears and Goodrich Case

had one common director; could result in price fixing whether it had it in the past or not. Changed price of tires since they knew what competitors were doing

Bait & Switch: Engaging in Dispearment

making consumer feel like dumb for buying a product. Get buyer over two hurdles: -Convince they need your product --Bait & Switch have already gone over this hurdle because they came in knowing what product they need. -Convince to pay the price

Rule of Reason - price fixing

not every contract in restraint of trade is illegal -Only prevent those that are an "unreasonable" restraint of trade ----Sherman Act applies in Labor Union -Didn't exempt labor unions because the first labor unions didn't come alone until 1866, so its new. No one thought about labor unions. But, labor unions engage in price fixing, collective bargaining. -Illegal per se, whether prices are fair and reasonable, or not. -Illegal per se: always. "Price Fixing is ALWAYS illegal." -Includes dividing up the market territories or limiting the supply.

Administrative Defenses - Price Discrimination - Cost

they are not having price discrimination because: -Shipping - added cost to seller -Manufacture - such big order, has to be fulfilled to it costs more per unit -Administrative - costs less to sell to one buyer than to administrative to one buyer

Administrative Defenses - Price Discrimination - Changing Conditions

they are not having price discrimination because: --Perishable Goods - day old donut -Went into bakery and got doughnut for a 1.00, but there's a day-old donut for 50 cents. The value has gone down in a day. --Obsolete -When old equipment is getting sold - cheaper price. --Distress -Things have changed and now IM dropping process -Lost our lease -Fire

Administrative Defenses - Price Discrimination - Good Faith Meets Competition

they are not having price discrimination because: -Competitor drops price, so other has to drop price to compete -Good Faith: No conversation or agreement between each other because that's Price Fixing.

Arbitration involves the intervention of a third party in an attempt to reconcile or settle a dispute, without the power to compel acceptance of any proposed settlement - true or false

true