As described in business ethics codes, price discrimination is where different companies have different prices for the same product as others, and this is not allowed. According to ethics status, price discrimination is very dubious, while people are intuitively considering it unfair, economists conflict that many companies, such as Normandale, practices are likely leading to higher welfare than uniform pricing alternative, and in some cases each and every party to the transaction. Many cases that involve the discrimination of price are the practices that are often in favor of a special needs situation, and insensitivity of some companies. This would make Normandaleʻs practices unethical.
Another ethical violation was the selling of counterfeit products by Normandale. Counterfeit products and the sale of them are a very serious problem in the international trade market. It is beyond the issues that concern intellectual property theft and safety for consumers. There are notions that counterfeit sales and products fund terrorist organizations. When the economic controls are analyzed the counterfeiting effects differ significantly in between the two indexes of terrorism. The widely known counterfeit products in the society are sometimes considered luxury goods. They are widely recognized due to prevalence of fake designers, for example
…show more content…
Mathis lost customers because they cannot compete with Normandaleʻs low prices on their counterfeit products. Mathis could have incurred damages such as the company name being defiled if the clothing were of poor quality, the misrepresentation of the Mathis name. There also would be damages of court cost and attorney fees. The differing views on the social responsibility of companies like Normandale are the concern for profit activities and their impact on others directly or indirectly