Question: Answer the following questions, explain and justify your argument from legal and ethical points of view . 1. Corn Products Refining Company (Corn Products) manufactured

Answer the following questions, explain and justify your argument from legal and ethical points of view .

1. Corn Products Refining Company (Corn Products) manufactured corn syrup, or glucose ( a principal ingredient of low-priced candy), at two plants, one located in Chicago, Illinois, and the other in Kansas City, Missouri. Corn Products sold glucose at the same retail price to all purchasers but charged separately for fright charges, Instead of charging actual fright charges, Corn Products charged every purchaser the price it would have cost for the glucose to be shipped from Chicago, even if the glucose was shipped from its Kansas City Plant. This base point pricing system created a favored price zone for Chicago based purchases and put them in a better position to compete for business. The Federal Trade Commission sued |Corn Products, alleging that it was engaging in price discrimination, in violation of Section 2(a) of the Robnson Patman Act.

Questions: What elements must be proven to find price discrimination? Has Corn Products acted ethically in adopting its base point pricing system? Why would the company adopt such a pricing system? Is Corn Products liable for price discrimination?

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