Regulatory Framework & Compliance Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Framework & Compliance flashcards as text
Under the Robinson-Patman Act, which defense allows a seller to match a competitor's lower price to a specific buyer?
Answer: Meeting competition defense
The meeting competition defense permits a seller to lower prices to a specific buyer in good faith to match a competitor's equally low price.
Which federal agency has primary enforcement authority over deceptive pricing practices under the FTC Act?
Answer: Federal Trade Commission
The Federal Trade Commission enforces Section 5 of the FTC Act, which prohibits unfair or deceptive acts including deceptive pricing.
A company prices a product below its average variable cost in order to drive a rival out of the market. This is best described as:
Answer: Predatory pricing
Predatory pricing involves setting prices below cost with the intent to eliminate competition and later raise prices monopolistically.
The Sherman Antitrust Act Section 1 prohibits which of the following pricing behaviors?
Answer: Horizontal price fixing among competitors
Section 1 of the Sherman Act prohibits contracts, combinations, or conspiracies in restraint of trade, including agreements among competitors to fix prices.
Under EU competition law, which article of the Treaty on the Functioning of the European Union (TFEU) addresses anticompetitive agreements including price fixing?
Answer: Article 101
Article 101 TFEU prohibits agreements between undertakings that restrict competition, including horizontal price-fixing arrangements.
Which of the following is NOT a recognized exception under the Robinson-Patman Act that allows differential pricing?
Answer: Brand differentiation
Brand differentiation is not a statutory defense under Robinson-Patman; the recognized defenses are cost justification, meeting competition, and changed conditions.
A supplier who charges different prices to two competing resellers for the same product may violate the Robinson-Patman Act only if the price difference:
Answer: May substantially lessen competition or injure a competitor
Robinson-Patman requires a showing that the price discrimination may substantially lessen competition or tend to create a monopoly.