retail test 4 – Flashcards
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The ______ Act requires companies to notify the government of their intent to merge
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Hart-Scott-Rodino
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The ____ Act makes it a federal crime to defraud consumers through the use of mail
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Mail Fraud
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The ____ Act requires automanufacturers to post suggested retail prices on new cars
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Automobile Information Disclosure
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The ____ Act prevents the marketing and selling of harmful toys and dangerous products
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Child Safety
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When airlines agree to set fares at the same price, they are
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engaging in horizontal price fixing
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_____ Price fixing occurs when a group of competiting retailers establish a price at which to sell a certain item
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horizontal
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in early june all of the local clothing store owners in your trading area met and decided to charge 25 for US Flag T shirts until after fourth of july. These sellers may be in violation of the
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Sherman Antitrust Act
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sherman antitrust act sought to
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prevent monopolies or conspiracies that are in restraint of trade
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sherman antitrust
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focuses on restraint of trade and makes horizontal price fixing illegal
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resale price maintenance is another word for
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Fair Trade
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The Robinson Patman Act Specifically adresses
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price discrimination by suppliers
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3 most common defenses available to suppliers charged with price discrimination
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Cost justification changing market conditions meeting competition
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The Wheeler-Lea Amendment to the FTC Act
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made illegal "unfair or deceptive acts in commerce"
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palming off
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when a retailer represents merchandise as being made by another frim thatn the true manufacturer
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Three product restraints that influce retailers product decisions
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product safety product liability and warranties
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The Magnuson- Moss Warranty act only applies to written warranties on
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all products costing more than 15 dollars
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Horizontal Price fixing
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a group of competiting retailers or other channel members at a given level of distribution establish a fixed price at which to sell certain brands or products
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Vertical Price Fixing
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a retailler collaborates with the manufacturer or wholesaler to resell an iten at an agreed upon price, also called resale price maintenance of fair trade
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Price discrimination
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two retailers buy an identical amount of "like grade and quality merchandise from the same supplier but pay different prices
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Deceptive pricing
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a misleading price is used to lure customers into the store and then hidden charges are added or the item advertised may be unavailable
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Predatory pricing
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a retail chain charges different prices in different geographic areas to eliminate competition in selected geographic areas
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promotion decisions are constrained by the
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Federal Trade commision act and Wheeler Lea Ammendment of the FTC Act
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justification
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cost justification changing in market conditions meeting competition in good faith
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Deceitful Diverson of Patronage
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publish or verablize falsehoods about a competitors as to divert their patrons
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Palming of
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a retailer represents that the merchandise is mady by a firm other than the true manufacturer
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Requirements to challange any claim contained in advertising
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the FTC must prove that the challenged claim is contained in the advertisement the claim must be deceptive the deceptive claim must be material
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Forbidden practices
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refusing to show, demonstrate or sell the product offerd disparaging, by word or deed the advertised product falling to have sufficient quantities of the advertised product at all outlets listed in the advertisement refusal to take orders for the advertised merchandise to be delivered within a responable period of time design sales plan or compensation such that to discourage salesman from selling advertised product
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Illegal practices
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Failing to be honest or omitting key facts ini either an ad or sales presentation
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