If Penn Hills Mfg

question 91

Multiple Choice

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio-with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,this arrangement:

• A) Would definitely be ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal.
• B) May or may not be LEGAL-the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition.
• C) Would definitely be LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal.
• D) Would definitely be ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal.
• E) Would definitely be LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal.

---

Definitions:

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.

Punishment

A method used to reduce or eliminate unwanted behavior by introducing a negative consequence or removing a desired stimulus following the behavior.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Anger And Hostility

Intense feelings of displeasure or aggression towards something or someone, often displayed through antagonistic or confrontational behavior.