The Sherman Antitrust Act Prohibits Price Fixing

question 147

Multiple Choice

The Sherman Antitrust Act prohibits price fixing. Price fixing is

• A) an attempt to establish high prices by becoming the market leader.
• B) the use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is.
• C) the practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage.
• D) an agreement among competing firms to raise, lower, or maintain prices for mutual benefit.
• E) the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace.

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Definitions:

Reimbursed

Repaid or compensated for expenses or losses incurred.

Contract

An agreement legally recognized and enforceable, made between two or more parties.

Specific Language

Precise and clear language that explicitly states or describes something without ambiguity.

Article 2

A section of the Uniform Commercial Code (UCC) that governs the sale of goods, providing a framework for transactions and specifying obligations of buyers and sellers.