A Prominent Fast-Food Chain Sets a Very Low Price for Its

question 41

Multiple Choice

A prominent fast-food chain sets a very low price for its burgers with the intent of driving its competition out of business.This is an example of:

• A)predatory pricing.
• B)vertical price fixing.
• C)horizontal price fixing.
• D)price discrimination.
• E)bait and switch.

---

Definitions:

Fourth Amendment

A provision in the U.S. Constitution protecting individuals from unreasonable searches and seizures by the government.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet legally formed, with certain conditions for later adoption by the corporation.

Promoters

Individuals or entities that undertake the preliminary activities required to establish a corporation or organize a business venture.

Corporate Veil

A legal concept that separates the actions and liabilities of a corporation from its shareholders, protecting them from being personally liable for the company's debts and obligations.