Resale Restrictions Have Been Prosecuted Under the Sherman Act

question 280

Multiple Choice

Resale restrictions have been prosecuted under the Sherman Act. Today, however, the courts apply the ________ in such cases and consider whether such restrictions have a "demonstrable economic effect."

• A) laissez-faire rule
• B) caveat emptor principle
• C) rule of reason
• D) invisible hand standard
• E) FTC Act provision

---

Definitions:

Amortization Expense

The periodic reduction in the book value of an intangible asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, generally used in preparing financial statements.

Capital Assets

Long-term assets acquired for operating purposes, including land, buildings, machinery, and equipment, which are not easily convertible into cash.

Exchange Rates

The equivalent worth of one currency in another during exchange.