In Markets Where Restrictions on Advertising Have Been Used to Curtail

question 589

Multiple Choice

In markets where restrictions on advertising have been used to curtail competition, the U.S. courts have generally

• A)referred the matters of advertising restrictions to executive regulators.
• B)enforced industry-wide agreements to restrict advertising.
• C)been silent on the effect of explicit advertising restrictions.
• D)overturned laws that prohibit advertising.

---

Definitions:

Operating Cycle

The time period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Merchandising Company

A company that purchases and sells tangible inventory to customers without changing its form.

Service Company

A business entity that provides intangible products or services to consumers or other businesses.

FOB Shipping Point

A term used in shipping that indicates that the buyer is responsible for the cost and risk of transport as soon as the goods are loaded onto the shipping vehicle.