Asked by anthony triguero on May 06, 2024
Verified
Which of the following situations is most likely a case of Sherman Act Section 1 violation?
A) A manufacturer unilaterally assigns exclusive territories to its dealers.
B) A manufacturer unilaterally suggests a retail price to its dealers for its products.
C) A manufacturer causes its dealers to agree not to sell outside their dealership territories.
D) A manufacturer limits the dealerships it grants in a particular geographic area.
Sherman Act Section 1
A provision of U.S. antitrust law that prohibits contracts, combinations, or conspiracies that restrain interstate or foreign trade.
Violation
The act of disregarding or breaking a law, agreement, or rule, resulting in possible legal penalties or consequences.
Manufacturer
A person or company that makes goods for sale, especially on a large scale through the use of machines.
- Identify the elements and legal consequences of tying agreements and vertical price-fixing.
Verified Answer
Learning Objectives
- Identify the elements and legal consequences of tying agreements and vertical price-fixing.
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