Asked by Efrain Lomeli on May 22, 2024
Verified
Snowboards Inc. refuses to sell its products to Timber Winter Sports Stores, Inc., a retail snowboard dealership. This violates Section 2 of the Sherman Act if Snowboards has monopoly power and
A) none of the choices.
B) Timber has or is likely to acquire monopoly power.
C) the refusal is unilateral.
D) the refusal has an anticompetitive effect on the market.
Sherman Act
An antitrust law enacted in 1890 to prevent anti-competitive practices, monopolies, and to promote economic fairness.
Monopoly Power
The ability of a single company or organization to control or dominate an industry or market, limiting competition.
Anticompetitive Effect
Actions or practices that reduce or eliminate competition in a market, often deemed illegal or unfair under antitrust laws.
- Evaluate the repercussions of monopoly practices and market control on competitive forces and the experiences of consumers.
- Decode the legal principles for the evaluation of monopolization and endeavors to monopolize a market.
Verified Answer
MM
Marilyn MonroyMay 22, 2024
Final Answer :
D
Explanation :
The refusal violates Section 2 of the Sherman Act if Snowboards Inc. has monopoly power and the refusal has an anticompetitive effect on the market. This is because actions that maintain or attempt to expand monopoly power by excluding competitors can be considered anticompetitive under antitrust laws.
Learning Objectives
- Evaluate the repercussions of monopoly practices and market control on competitive forces and the experiences of consumers.
- Decode the legal principles for the evaluation of monopolization and endeavors to monopolize a market.