Question

Ou have been hired as the new pricing manager for WCG, which sells cell phone plans to customers. You manage a team of pricing analysts who present you with ideas for pricing strategy. While many of the ideas are good, there are some that you worry might not be legal under U.S. law. Review each of the six at-risk pricing strategies and determine the appropriate law or regulation to determine if the strategy is legal or illegal.
Many legal and ethical issues impact pricing decisions. Pricing is one of the most watched and regulated marketing activities because it directly impacts the financial viability of both organizations and individuals. The United States government and other major economies, such as Japan and the European Union, are committed to stopping and punishing anticompetitive and harmful pricing behavior through a variety of laws and regulations that marketers need to know as they are developing pricing strategy.

Select the law that determines if the strategy is legal or illegal.


1. WCG agrees with its cell plan competitors to raise prices for all customers.

(Click to select) Wheeler-Lea Act Sherman Antitrust Act Robinson-Patman Act

2. WCG colludes with another company to stop offering family plan discounts.

(Click to select) Wheeler-Lea Act Sherman Antitrust Act Robinson-Patman Act

3. WCG decides to advertise a new plan that is 75 percent off the regular plan, even though it is only 20 percent less.

(Click to select) Wheeler-Lea Act Sherman Antitrust Act Robinson-Patman Act

4. WCG promises retail consumers a "wholesale" rate, even though it is the same price as always.

(Click to select) Wheeler-Lea Act Sherman Antitrust Act Robinson-Patman Act

5. WCG wants to attract more women to its plans and starts offering female consumers 30 percent off their bill.

(Click to select) Wheeler-Lea Act Sherman Antitrust Act Robinson-Patman Act

6. WCG offers a discount to teenage males in an effort to get customers from its more trendy competitor.

Answer 1

Answer:

1. WCG agrees with its cell plan competitors to raise prices for all customers - Sherman Antitrust Act

2. WCG colludes with another company to stop offering family plan discounts - Sherman Antitrust Act

3. WCG decides to advertise a new plan that is 75 percent off the regular plan, even though it is only 20 percent less - Wheeler-Lea Act

4. WCG promises retail consumers a "wholesale" rate, even though it is the same price as always - Wheeler-Lea Act

5. WCG wants to attract more women to its plans and starts offering female consumers 30 percent off their bill - Robinson-Patman Act

6. WCG offers a discount to teenage males in an effort to get customers from its more trendy competitor - Robinson-Patman Act