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Violations of Clayton Act and Robinson-Patman Act

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Glassware Corp. is the main supplier of glass in a given country, although it faces competition from smaller glass producers. Glassware offers a quantity discount to Windoze Inc., a giant windows producer, if and only if Windoze Inc. agrees to not buy glass from other glass producers. Glassware does not offer this discount to any of its other customers.

Windoze accepts the offer, and as a result, a substantial number of small glass producers start exiting the market.

Glassware violated which of the following provision(s) of the Clayton Act and Robinson-Patman Act?

I. Price discrimination
II. Exclusive dealing
III. Tying contracts
IV. Stock acquisition of competing companies
V. Interlocking directorates

A. II only

B. I, II, III, and V only

C. I, II, and IV only

D. I and III only

E. I only

F. I and II only

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Solution Summary

Determining which provisions of Clayton Act and Robinson-Patman Act have been violated

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Glassware is guilty of exclusive dealing and price discrimination only (F). Price discrimination involves offering a good at different ...

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