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Web Assignment 1: The Robinson-Patman Act

To complete this assignment successfully, you should:

  1. Read the assignment carefully
  2. Open and study the links


The site below will provide you with information on the Robinson-Patman Act, a federal law that places specific controls on the trade promotions by manufacturers. Open and read the links at the site below. This assignment is due on 3/19/98.

The Robinson-Patman Act

When you have finished, read the scenario below and answer the questions below. Submit using the forms.

Firrman Sausage Company has a new product, bourbon links packaged in a spicy sauce. To encourage the Safeway chain to help them promote the new product, Firrman offers to discount their product to Safeway at a rate of 40% the normal distribution price. Independent grocers in the area are also offered a discount rate, 20% of the normal distribution price. Firrman believes it in his company's best interest to give Safeway the largest discount because they will reach more customers with their product. Mr. Firrman is shocked when the Federal Trade Commission notifies him that he is under investigation for violation of the Robinson-Patman Act.

  1. In one or two sentences, explain why the actions of Firrman Sausage violate the Robinson-Patman Act.

  2. Cite the specific Article of the Robinson-Patman Act that is violated in the above-cited scenario.


For grading purposes, please provide the following information:

Your Name:
Your Email address:

Once you have filled in all of the areas above, click the Send the assignment button below to send the assignment to the instructor.

  

Send E-mail to Prof. Rich Lei.
or call (520) 523-2490


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