In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought

Question:

In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car dealers. An article in The New York Times (August 29, 1999) reported that a New Jersey Mercedes who had his franchise revoked is suing Mercedes, claiming that he was fired for refusing to go along with Mercedes’ no-haggling pricing policy. The New Jersey said he thought the NFP policy was illegal. Why might Mercedes’ NFP policy be illegal? Can you offer another reason why the New Jersey might not have wished to follow a no-haggling policy?

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...