retail test 4

The Clayton Act
adds to the sherman act by prohibiting specific practices
The Celler Kefauver Antimerger Act
ammend section 7 of the clayton act by broadening the power to prevent corporate acquisitions where the acquisition may have a substantially adverse effect on competition
The Equal Credit Opportunity Act
prohibits discrimination in credit transactions because of gender, martial status, race, national origin, religion, age or receipt of public assistance
The _____ Act establishes protection for trademarks
Lanham
The ______ Act requires companies to notify the government of their intent to merge
Hart-Scott-Rodino
The ____ Act makes it a federal crime to defraud consumers through the use of mail
Mail Fraud
The ____ Act requires automanufacturers to post suggested retail prices on new cars
Automobile Information Disclosure
The ____ Act prevents the marketing and selling of harmful toys and dangerous products
Child Safety
When airlines agree to set fares at the same price, they are
engaging in horizontal price fixing
_____ Price fixing occurs when a group of competiting retailers establish a price at which to sell a certain item
horizontal
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
Sherman Antitrust Act
sherman antitrust act sought to
prevent monopolies or conspiracies that are in restraint of trade
sherman antitrust
focuses on restraint of trade and makes horizontal price fixing illegal
resale price maintenance is another word for
Fair Trade
The Robinson Patman Act Specifically adresses
price discrimination by suppliers
3 most common defenses available to suppliers charged with price discrimination
Cost justification
changing market conditions
meeting competition
The Wheeler-Lea Amendment to the FTC Act
made illegal “unfair or deceptive acts in commerce”
palming off
when a retailer represents merchandise as being made by another frim thatn the true manufacturer
Three product restraints that influce retailers product decisions
product safety
product liability
and warranties
The Magnuson- Moss Warranty act only applies to written warranties on
all products costing more than 15 dollars
Horizontal Price fixing
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
Vertical Price Fixing
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
Price discrimination
two retailers buy an identical amount of “like grade and quality merchandise from the same supplier but pay different prices
Deceptive pricing
a misleading price is used to lure customers into the store and then hidden charges are added or the item advertised may be unavailable
Predatory pricing
a retail chain charges different prices in different geographic areas to eliminate competition in selected geographic areas
promotion decisions are constrained by the
Federal Trade commision act and
Wheeler Lea Ammendment of the FTC Act
justification
cost justification
changing in market conditions
meeting competition in good faith
Deceitful Diverson of Patronage
publish or verablize falsehoods about a competitors as to divert their patrons
Palming of
a retailer represents that the merchandise is mady by a firm other than the true manufacturer
Requirements to challange any claim contained in advertising
the FTC must prove that the challenged claim is contained in the advertisement
the claim must be deceptive
the deceptive claim must be material
Forbidden practices
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
Illegal practices
Failing to be honest or omitting key facts ini either an ad or sales presentation