CPP Regulatory Framework & Compliance 3

Question 1

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

Accepted Answer

Rule of reason

Answer

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.

Question 2

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

Accepted Answer

Third-degree price discrimination

Answer

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

Question 3

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

Accepted Answer

Price governance and delegation of authority

Answer

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

Question 4

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

Accepted Answer

It may breach transparency and lawful processing requirements for personal data

Answer

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

Question 5

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

Accepted Answer

Provide certified cost or pricing data when contracts exceed the threshold

Answer

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.

(CPP) Certified Pricing Professional Practice Test

(CPP) Certified Pricing Professional Practice Test

CPP Regulatory Framework & Compliance 3