Billings and Durick, Who Are Competing Distributors, Made an Agreement

question 5

Multiple Choice

Billings and Durick, who are competing distributors, made an agreement whereby Billings promised that he would not sell his goods in a specified area, and Durick promised that she would not sell her goods in another specified area. The agreement was made to keep prices high by eliminating competition. This arrangement was

• A) legal because it was made in reasonable restraint of trade in order to control prices and territory.
• B) legal because a binding contract was made willingly by both parties.
• C) illegal because it called for unreasonable restraint of trade by controlling prices and territories.
• D) illegal because agreements that allow manufacturers to set prices are voidable.

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Definitions:

Addiction

Dependence on a drug such that stopping its use results in withdrawal symptoms.

Alcohol Dehydrogenase

A liver enzyme that metabolizes alcohol into aldehyde.

Aldehyde Dehydrogenase

An enzyme that converts aldehyde to acetic acid.

Metabolism

The chemical processes that occur within a living organism in order to maintain life, involving the conversion of food to energy, elimination of nitrogenous wastes, and the synthesis of necessary compounds.