Which act may apply to special orders?

Which act may apply to special orders?

• A. The Sherman Act
• B. The Clayton Act
• C. The Federal Trade Commission Act
• D. The Robinson-Patman Act

Answer: (D)

Special orders often involve negotiating a unique price for a specific customer. The Robinson-Patman Act targets price discrimination—charging different prices for goods of like grade and quality to different buyers when that difference tends to lessen competition or create a monopoly. In practice, if a seller offers a special order price to one buyer but not to others in similar situations, and there’s no valid cost difference or other allowed justification, the transaction could fall under this act. The law requires any price differences to be supported by cost differentials, the need to meet a competitor’s price, or similar defenses; without such justification, discriminatory pricing in special orders can be illegal. The Sherman Act and the Clayton Act address broader antitrust concerns, and the FTC Act covers unfair or deceptive practices, but price discrimination in the context of special orders is most directly governed by the Robinson-Patman Act.

Special orders often involve negotiating a unique price for a specific customer. The Robinson-Patman Act targets price discrimination—charging different prices for goods of like grade and quality to different buyers when that difference tends to lessen competition or create a monopoly. In practice, if a seller offers a special order price to one buyer but not to others in similar situations, and there’s no valid cost difference or other allowed justification, the transaction could fall under this act. The law requires any price differences to be supported by cost differentials, the need to meet a competitor’s price, or similar defenses; without such justification, discriminatory pricing in special orders can be illegal. The Sherman Act and the Clayton Act address broader antitrust concerns, and the FTC Act covers unfair or deceptive practices, but price discrimination in the context of special orders is most directly governed by the Robinson-Patman Act.