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Refusal to sell due to competitive discount by mail order

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A mail order company has begun to sell your prestige luggage at a 30% discount to the consternation of department stores that sell it at list price. You refuse to fill the mail order company's next order, explaining that you no longer wish to have that company sell your product. Is this practice illegal or legal? Explain your answer.

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Solution Summary

The legality of pricing luggage at a discount is determined.

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Here the answer will be based on the relationship between the mail order company and the luggage manufacturing company. ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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