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Fact Pattern 16-1 Patty Owns and Operates a Gym. Her Main Competitor Is

question 20

Multiple Choice

Fact Pattern 16-1
Patty owns and operates a gym. Her main competitor is Jason who runs another gym three streets from her. They cater to the same clientele. Patty and Jason keep trying to undercut each other in order to attract customers. One evening Patty sees Jason in the local coffee shop and sits down to talk with him. They discuss how difficult it is to do upgrades and make money with the prices they are charging. Patty winked at Jason and said "You know, charging $80 per month would enable a good profit margin." The next day Patty started charging $80 per month as did Jason. Customers started complaining particularly after another coffee drinker and gym customer at a table sitting at a table near Patty and Jason made it known that they had seemed very cozy. Patty and Jason deny any agreement to set the same price for gym membership. They avow that the decision was made by each of them independently.
-Refer to Fact Pattern 16-1.Frank,a first year law student and gym member,is suspicious; but he does not know what violation to claim.Which of the following is the correct term for an illegal agreement by providers of the same good or service to charge a set fee?

Definitions:

Constitutions

Legal documents or sets of principles that outline the fundamental laws governing a country or other organization, specifying how the entity is to be governed and defining the rights of its citizens or members.

American Citizens

Individuals born in the United States or who have obtained citizenship through naturalization, granting them certain rights, duties, and privileges.

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government and the rights of the citizens.

Branches of Government

These are the divisions of governance in a state, usually comprising the executive, legislative, and judicial branches, responsible for different functions of government.