Describe the roles of laws and ethics in pricing.
Description should include legal and ethical issues in the pricing of goods and services, such as
- legislation governing pricing practices
- reasonable and fair profit
- questionable pricing practices (e.g., price fixing, price discrimination, unit pricing, resale price maintenance)
- the role of competition in pricing
- unfair trade practices law
- Federal Trade Commission guidelines for advertising prices.
Process/Skill Questions:
- How is unit pricing beneficial to consumers?
- What are the major laws affecting pricing?
- When is price discrimination allowed?