Practice question
A dominant manufacturer charges less per unit for bulk orders because reliable evidence shows corresponding savings in packaging and delivery. A small buyer argues that every difference in price is prohibited. What is the best answer?
- Every price difference is necessarily abusive
- Dominance makes cost evidence irrelevant
- The small buyer must receive the lowest price regardless of cost
- Section 15(d) recognizes permissible differentials reasonably reflecting relevant cost differences; the facts do not establish abuse merely from unequal prices
- Only a foreign seller may use bulk pricing
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14–15 and 24–27: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/63120
Answer this question in flashcards to review your response and continue practicing.