Case study of jackson motors

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Reference no: EM1323349

Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However, a competitor offered to sell similar motors to one of Jackson Motors' biggest customers for only $80 and Jackson Motors offered that customer--but not it's other customers--a $80 selling price. According to the Robinson-Patman Act:

Answer

Jackson Motors is breaking the law unless it offers to sell motors to all of its customers for $80.
Jackson Motors cannot lower its $100 selling price.
Jackson Motors has not violated the law--it is just meeting competition.
Jackson Motors and its competitor are both guilty of price fixing.

Reference no: EM1323349

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