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A functional discount is a broader concept than a trade discount. It is defined for the purposes of this paper as the differential in price extended by a seller to a buyer who, because of the buyer's performance of distribu-tive functions or elimination of the need for the performance thereof by the
A functional discount refers to a price reduction or discount offered to a buyer based on the specific role or function they perform within the supply chain or distribution channel. It is a type of trade discount that recognizes the value added or the role played by the buyer in promoting or facilitating the sale […]
18 gru 2022 · A functional discount is a monetary relief of part of the price, usually for a reseller rather than the end customer. A functional discount may correspond to a situation in which a price reduction is extended by a seller if, and only if, a buyer pays for the items purchased within a specified period of time.
13 gru 2018 · The authors clarify trade and functional price discount terminology, discuss the role those discounts play in developing more efficient channel systems, review the existing defenses to price discrimination charges, and conclude with a recommendation for an explicitly recognized availability defense for these types of channel-based price discounts.
Through the use of functional discounts, a manufacturer can "buy distribution" in various distribution channels by accepting different profit levels from varying classes of customers who
FUNCTIONAL DISCOUNTS AND PRESENT ANTITRUST LAWS The price discrimination sections of the antitrust laws have attempted spe-cifically to provide for the legality of dis-counts based on quality, quantity, and cost differences in goods sold. The laws do not, however, provide any explicit guide to the legal status of discounts
trade and functional price discount terminology, discuss the role those discounts play in developing more efficient channel systems, review the existing defenses to price discrimination charges, and conclude with a recommendation for an explicitly recognized
