Which of the Following Was the Result in Continental T

question 3

Multiple Choice

Which of the following was the result in Continental T.V.Inc.,v.GTE Sylvania Inc.,the U.S.Supreme Court case in which Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product?

• A) The court upheld the continued used of the bright line per se rule of illegality for all vertical restrictions.
• B) That the rule-of-reason should always be applied when vertical restrictions are involved.
• C) That the rule-of-reason standard should be applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.
• D) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.
• E) That the per se rule of illegality is applied in a vertical restriction case only when a manufacturing defendant is involved; otherwise, the rule-of-reason test applies.

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Definitions:

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Expected-Rate-of-Return Curve

A graphical representation that illustrates the relationship between the expected return of an investment and its associated risk.

Interest-Rate Cost-of-Funds Curve

A curve that illustrates the relationship between the interest rates on loans or deposits and the total amount of funds borrowed or lent.

MB = MC Decision Framework

A decision-making process where an action is taken if the marginal benefit (MB) is equal to or greater than the marginal cost (MC).