Which of the Following Is Illegal Under the Sherman Act

question 190

Multiple Choice

Which of the following is illegal under the Sherman Act? I. A competitor agrees with another competitor on the price at which the product will be sold.
II) A manufacturer refuses to supply a retailer who does not accept the manufacturer's guidance on the price.

• A) only I
• B) only II
• C) both I and II
• D) neither I nor II

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Definitions:

Restraint of Trade

Legal agreements or policies that restrict competition or limit the freedom to conduct business in a specific market or manner.

Loss Leader Advertising

A marketing strategy where a product is sold at a loss to attract customers in the hope they will buy other items at full price.

Competition Act

Legislation aimed at promoting fair business practices, preventing anti-competitive behavior, and regulating mergers to ensure a competitive market environment.

Misleading Advertising

Promotional material that deceives or misinforms consumers, either intentionally or unintentionally.