[Adult Floaters] Adam and Zach Are Both Involved in Businesses

question 83

Multiple Choice

[Adult Floaters] Adam and Zach are both involved in businesses that manufacture bathing suits with small personal flotation devices implanted to assist with swimming.They both ship the suits to different states around the country.Adam and Zach get together and decide to raise their prices.They decide that since they are the only two manufacturers of this type of suit,if they both stick together and raise prices to an agreed upon amount,then consumers will be forced to pay that amount.They want to make a lot of money before anyone else jumps into the market.Adam's disgruntled secretary finds out about the agreement and sends out letters to consumers revealing the agreement.
-In attempting to establish a violation of the Sherman Act,what type of trade violation would the government most likely allege?

• A)A horizontal restraint
• B)A rule-of-reason restriction
• C)A vertical restraint
• D)An agreed restriction
• E)A corresponding restriction

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Definitions:

Mutual Mistake

A mistake where both parties have made mistaken assumptions as to the subject matter of the agreement.

Defendants Than Plaintiffs

A comparative statement indicating a situation where there are more individuals or entities accused in a case than those bringing the case forward.

Rescission

The legal act of cancelling or terminating a contract, returning all involved parties to their original positions.

Reliance

The act of depending on or trusting in something or someone, often in the context of reasoning or making decisions.