There Are Two Ice Cream Stands at the Same Intersection

question 63

Multiple Choice

There are two ice cream stands at the same intersection.In order to protect their businesses,the two owners agree that they will charge their customers the same prices for an ice cream cone.What type of horizontal restraint is this?

• A) not a horizontal restraint
• B) price fixing
• C) market allocation
• D) boycott

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Definitions:

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants come to a consensus on their own.

Arbitration

A method of dispute resolution where a neutral third party (the arbitrator) makes a binding decision, outside of a courtroom.

Compulsory

Required by law or a rule; obligatory, leaving no option for non-compliance.

Lifetime Appointments

Positions, often in the judicial branch, where the appointee serves for the remainder of their life, unless they resign, retire, or are removed through impeachment.