Brandon Recently Completed Law School, Passed the Bar Exam and Began

Multiple Choice

Brandon recently completed law school, passed the bar exam and began working for a prestigious law firm in Dallas, TX. The firm has a strict dress code and Brandon is required to wear business suits, dress shirts, ties, and dress shoes. He is investing in a new wardrobe and visited Men's Discount Warehouse to purchase new clothes. He shared his situation with Tim, his sales representative, and Tim told him that if he bought 2 suits, he would receive 2 dress shirts, 3 ties, and 2 pairs of socks for free. Which of the following statements is TRUE regarding this example?

A) Promotions such as this are legal when differences in price reflect cost differentials
B) The Robinson-Patman Act prohibits this activity as it would be considered price discrimination
C) Retailers are restricted from using bundled pricing
D) This practice would likely drive competitors out of business