Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Intent to charge a pnce that Is unreasonably excessive under the circumstances. In determining whether a price is unreasonably excessive, it shall be considered whether:

image text in transcribed
Intent to charge a pnce that Is unreasonably excessive under the circumstances. In determining whether a price is unreasonably excessive, it shall be considered whether: {1] The price charged by the seller is attributable to additional costs imposed by the seller's supplier or ether costs of providing the good or service during the triggering event. (2} The price charged by the seller exceeds the seller's average price in the preceding 50 days before the triggering event. If the seller did not sell or rent or offer to sell or rent the goods or service in question prior to the time of the triggering event, the price at which the goods or service was generally available in the trade area shall be used as a factor in determining if the seller is charging an unreasonably excessive price. (3} The price charged by the seller is attributable to uctuations in applicable commodity markets; fluctuations in applicable regional, national, or international market trends; orto reasonable expenses and charges for attendant business risk incurred in procuring or selling the goods or services.\" Essentially. the law says that it is illegal to charge a price that is \"too high\" (exact Il'ords: r'unreasonably excessive") during emergencies or natural disasters. Under he law, the state Attorney General's |Eiffice can put a stop to price gouging and :eek refunds for consumers who paid too much. The courts may also impose lenalties against price gougers of up to $5,[i{i[i foreach violation. The law applies o all levels of the supply chain from the manufacturer to the distributor to the etailer. in example of the application of this law was in September 2'01"}, in the wake of a upture in the pipeline that delivers gas to gas distributors in the state. The price of :as shot up, and many gas stations actually ran out of gas to sell. The North Iarolina Attorney General invoked the state's pricegouging law, and asked :onsumers to report gas stations that were charging a price that was deemed to be too high." a. 1ll'lr'hat is the goal of the price gouging law? b. 1I.|'lihat are the effects of the price gouging law? Be specic, using the gas rxample. c. Do you think the law is A |IE'lood Idea? If you could vote on this law, would you vote to keep it in place or would you vote to get rid of it?Justlfy your EHSWE i"

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The End Of Poverty Economic Possibilities For Our Time

Authors: Jeffrey D Sachs, Bono

1st Edition

0143036580, 9780143036586

More Books

Students also viewed these Economics questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago