Asked by Laura-Leigh Holley on May 06, 2024

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All of the gas stations in Smalltown agree to charge the same price for gas.The owners of the various companies get together every Friday in a coffee shop to decide what the price will be next week.This is:

A) a violation of the Section 1 of the Sherman Act.
B) a violation of the McCarran-Ferguson Act.
C) a violation of the Robinson-Patman Act.
D) not a violation,as long as it benefits consumers.

Sherman Act

A landmark federal statute in the U.S. that prohibits monopolistic practices and promotes competition among businesses.

McCarran-Ferguson Act

A U.S. federal law enacted in 1945 that exempts the business of insurance from most federal regulation, leaving regulation primarily to the states.

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically addressing price discrimination.

  • Scrutinize the lawfulness of corporate tactics including price-fixing, dividing markets, and imposing vertical constraints in the context of antitrust regulations.
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BM
Bedel MemmedovMay 10, 2024
Final Answer :
A
Explanation :
Owners of all of the gas stations in Smalltown agreeing to charge the same price for gas is an example of horizontal price-fixing.Such attempts by competitors to interfere with market forces and control prices have long been held per se unlawful under Section 1 of the Sherman Act.