Jim Agreed with a Company in a Neighboring State That

question 4

Multiple Choice

Jim agreed with a company in a neighboring state that was in the trash removal and recycling business that they would not compete with each other. They do not currently compete with each other, and the local nature of the trash removal business makes it unlikely that they ever would compete, even in the absence of the agreement. Does this agreement violate federal antitrust laws?

• A) Yes, if the companies are located within 50 miles of each other.
• B) Yes, the agreement would be a vertical restraint of trade.
• C) Yes, because any such agreement is automatically illegal, regardless of its impact on competition.
• D) No, there is no horizontal restraint here.
• E) No, the federal antitrust laws don't address interstate behavior.

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