YOU BE THE JUDGE WRITING PROBLEM American Academic Suppliers (AAS) and Beckley-Cardy (B-C) both sold educational supplies to schools. B-C’s sales began to plummet, and it was rapidly losing market share.

The company responded by reducing its catalog prices 5 to 12 percent. It also offered a discount of 25 to 40 percent in states in which AAS was making substantial gains. What claim might AAS make against B-C? Is it likely to prevail in court? Argument for AAS: B-C has committed predatory pricing. The company is selling below cost for the purpose of driving us out of business. Argument for B-C: Even if we were to drive AAS out of business, we do not have enough market power to recoup our losses.