Orton Inc sells car parts to hardware stores and garages across Canada. It grants its customers the
Question:
Orton Inc sells car parts to hardware stores and garages across Canada. It grants its customers the following discounts from the unit price of individual products set out in its price list:
■ Discounts of 10 percent for individual orders exceeding certain volumes
■ Discounts of 5 percent on any orders that exceed certain aggregate volumes over a six-month period
■ Discounts of 5 percent based on a commitment not to buy parts from any other supplier for a year (the commitment is not binding but if the customer honours it, the discount will be granted)
■ Discounts of 15 percent based on the purchase of specified volumes of other products sold by Orton Do any of these discounting practices raise legal concerns?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer