Dual Distribution Can Violate the Sherman Act and the Clayton

question 146

Multiple Choice

Dual distribution can violate the Sherman Act and the Clayton Act if the

• A) prices charged for items sold through one channel are different from the prices charged for the same items in another channel.
• B) manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or retailers.
• C) manufacturer has a corporate vertical marketing system with one channel and an administered vertical system with the other.
• D) manufacturer uses both a direct and indirect marketing channel.
• E) product is not available through more than one marketing channel.

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Definitions:

Liabilities

Financial obligations or debts that an entity is responsible for to external parties or creditors.

Probable Future Economic Benefits

The anticipated economic advantages expected to be received in the future as a result of owning or using an asset.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.

Entity's Profitability

A measure of how effectively a company generates profit from its operations, often evaluated through margins and return ratios.