Practice Test Geeks(CPP) Certified Pricing Professional Practice Test
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Regulatory Framework & Compliance Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Resale price maintenance (RPM) agreements between a manufacturer and its distributors are currently evaluated under which legal standard in the United States?

    Answer: Rule of reason

    Since the Supreme Court's 2007 Leegin decision, vertical minimum resale price maintenance is analyzed under the rule of reason rather than being per se illegal.

  2. Which type of price discrimination occurs when a company charges different prices to different customer groups based on their willingness to pay?

    Answer: Third-degree price discrimination

    Third-degree price discrimination segments customers into groups (e.g., students, seniors) and charges each group a different price based on demand elasticity.

  3. A company's pricing policy requires all sales reps to obtain management approval before offering discounts exceeding 15%. This is an example of:

    Answer: Price governance and delegation of authority

    Requiring management approval for discounts above a threshold is a price governance mechanism establishing delegation of authority in the pricing process.

  4. Under the EU's GDPR, how might personalized pricing based on individual browsing data create compliance risk?

    Answer: It may breach transparency and lawful processing requirements for personal data

    Using personal data to set individualized prices without adequate disclosure or lawful basis may violate GDPR's transparency and data processing requirements.

  5. In government contracting, the Truth in Negotiations Act (TINA) requires contractors to:

    Answer: Provide certified cost or pricing data when contracts exceed the threshold

    TINA (now codified in 10 U.S.C. § 2306a) requires contractors to submit certified cost or pricing data for negotiated contracts above a specified dollar threshold.

  6. A retailer advertises a product as '50% off the original price' but the 'original price' was never actually charged to customers. This practice violates:

    Answer: FTC guidelines on former price comparisons

    The FTC's guides against deceptive pricing prohibit fictitious former price comparisons where the reference price was not a genuine price at which the item was offered.

  7. Which of the following best describes 'zone pricing' in the context of regulatory compliance?

    Answer: Charging different prices in different geographic zones, which may raise antitrust concerns if it harms competition

    Zone pricing charges customers different prices depending on geographic location and can face antitrust scrutiny if it facilitates price discrimination that harms competition.