Vertical Price Fixing Involves Controlling Agreements Between Independent Buyers and Sellers

question 165

Multiple Choice

Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.This practice, is also called __________.

• A)price discrimination
• B)resale price maintenance
• C)predatory pricing
• D)tying arrangements
• E)exclusive dealing

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Definitions:

Payee

The individual or entity to whom a check, draft, or note is made payable.

Certified Check

is a check for which the issuing bank guarantees availability of funds by verifying the account's balance and then setting aside the check amount.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account, and signed by a cashier.

Drawer's Liability

Refers to the obligation of the drawer (the person who writes a cheque or draft) to ensure the availability of funds in the account for the amount specified for payment to the payee.