When Two or More Competitors Collude to Explicitly or Implicitly

question 3

Multiple Choice

When two or more competitors collude to explicitly or implicitly set prices,this practice is referred to as _____.

• A) horizontal price fixing
• B) price discrimination
• C) deceptive pricing
• D) predatory pricing

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Definitions:

Ultra Vires Doctrine

A legal principle that acts of a corporation must fall within the limits of the powers granted by law and the corporation's own constitution.

Criminally Liable

The legal responsibility or accountability of a person or entity for violations of criminal law, subject to penalties such as fines or imprisonment.

Governing Document

A formal record that establishes the rules, regulations, or principles by which an organization or entity is governed.

Certificate of Authority

A document issued by a state government granting a company permission to do business in that state as a foreign (out-of-state) entity.