Both Lemon Light,Inc

question 102

Multiple Choice

Both Lemon Light,Inc.and Orange Mist Corporation are soft drink distributors in Capital City.The soft drink business is highly competitive,profit margins are razor thin,and both companies are on the brink of bankruptcy.To save themselves,they agree to not sell soft drinks at a price below $3 per six-pack.This is a fair price; it allows both of them to make a fair profit; and the customers still get a relatively inexpensive drink.This action by Lemon Light and Orange Mist is:

• A) Legal,because they set a fair price.
• B) Legal,because they were on the brink of bankruptcy.
• C) Legal,because they did not set an absolute price,but only set a minimum price.
• D) Illegal,because it is horizontal price fixing.
• E) Illegal,because it is vertical price fixing.

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Definitions:

Paper Towels

Absorbent disposable towels made from paper, used for drying hands, wiping surfaces, or cleaning up spills.

Fixative

A chemical substance used in microscopy and histology to preserve tissues or cells by stabilizing their structure.

Dissecting Tray

A flat, usually metal or plastic, tray used to hold specimens for dissection.

Ventral

Pertaining to the front or anterior part of an organism.