Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 15

Mike is director of sales for his company. He negotiates prices with Paige and Lauren, who work for two of his biggest customers. Paige tells him that she can buy the same product cheaper elsewhere. He cuts the price for her, but not for his other customers. At the same time, he develops a crush on Lauren, so offers to sell her the product at a lower price. In subsequent months, these two customers come to dominate the market. Which statement is correct
(a) Mike can charge whatever price he wants to any customer.
(b) Mike must charge all his customers the same price.
(c) The price cut to Paige, but not Lauren, is legal.
(d) The price cut to Lauren, but not Paige, is legal.
(e) Mike is not required to charge all his customers the same price, but neither of these price cuts is legal.