If a Distributor Persuades a Manufacturer to Refuse to Deal

question 48

Multiple Choice

If a distributor persuades a manufacturer to refuse to deal with a rival distributor, the two parties:

• A) have committed a per se violation of Section 1 of the Sherman Act.
• B) do not violate Section 1 of the Sherman Act since this is a unilateral action.
• C) are conspiring to form a monopoly, thus directly violating Section 2 of the Sherman Act.
• D) are attempting vertical price-fixing.

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Definitions:

Environment Affects

The influence of surrounding physical, social, and cultural conditions on an individual's development and behavior.

IQs

A measure of a person's intelligence as indicated by an intelligence test, where the average score is set at 100.

Intellectual Development

The progression of cognitive abilities, including thinking, problem-solving, and decision-making, from infancy through adulthood.

Identical Twins

Siblings born from the same pregnancy, sharing 100% of their genetic material.