Asked by Shyla Schneider on Jun 15, 2024
Verified
Power Inc. and QualGas Corporation refine and sell natural gas. To limit the supply on the market and thereby raise prices, Power and QualGas agree to buy "excess" supplies from dealers and "dispose" of it. This is
A) a deal that neither restrains trade or harms competition.
B) not within the scope of the Sherman Act.
C) a per se violation of the Sherman Act.
D) subject to analysis under the rule of reason.
Per Se Violation
An action that is inherently illegal and does not require further proof of harm or anticompetitive effects to be considered a breach of law.
Sherman Act
A foundational U.S. antitrust law enacted in 1890 to prevent monopolies and promote competition among businesses.
Natural Gas
A fossil fuel composed mainly of methane, used as an energy source for heating, cooking, and electricity generation.
- Acquire insight into the application of the rule of reason and the identification of per se violations in the evaluation of antitrust laws.
Verified Answer
JN
James NdubuezeJun 20, 2024
Final Answer :
C
Explanation :
This agreement between Power Inc. and QualGas Corporation to limit the supply of natural gas in the market in order to raise prices constitutes a per se violation of the Sherman Act, as it directly restrains trade and harms competition by manipulating market supply.
Learning Objectives
- Acquire insight into the application of the rule of reason and the identification of per se violations in the evaluation of antitrust laws.