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Scenario 1 – Price Discrimination

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Evaluate whether violations of price discrimination laws occurred in the following situations.

  • Scarpetto Brothers Meat Corporation sold beef, pork, and poultry products to stores and distributors. Scarpetto established quantity discount rates that were published publicly and provided to all buyers. The top rates provided the highest discounts to buyers purchasing more than 50 container loads in a calendar year. Only three buyers consisting of two national food chains and one large retailer purchased 50 or more containers; therefore, only three companies received the best discount.
  • Jackson Tool Company is the largest manufacturer of power drills and their replacement parts. Jackson maintained two different lists of prices for its drills and parts. The green list contained parts that if purchased in quantities of ten or more were available for substantially less than the blue list.
  • Clareal Cosmetics sold hair color and other related beauty preparations to beauty supply stores and beauty salons using a standard or fixed price schedule. Some of the stores and salons were provided with free demonstrators and advertising materials. The shops that were not supplied with the samples and advertising materials claimed that Clareal was engaging in unlawful price discrimination because all shops and salons were not provided with the same free materials. 

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Scenario 2 – Property

·         Kenny and Sherry lived together in New Mexico since 2008, but they were not married until May 2010. The couple purchased a home together as joint tenants in 2008. Sherry provided the down payment from her savings. The mortgage payments were made from comingled funds before and after the marriage. The couple separated in January 2014.

·         In July 2010, Sherry founded Snowy Camel Apparel with $25,000 she received as an inheritance from her great uncle. Sherry had an idea for designing a special coating to be applied to wearing apparel that would make it suitable for use in extreme heat and cold. Sherry worked full time for Snowy and owned all of the company’s stock. Kenny continued with his job at the university and was not involved in Snowy’s operations. Due to limited financial resources, Sherry did not draw a salary from Snowy until March 2013.

·         Discuss the legal ramifications of the division of home, the business, and other assets.  

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