Gary's Garden Gnomes, Inc. GGG) makes garden gnomes. Gary has distribution agreements with companies throughout the United States. Gary, in an effort to stimulate the garden gnome market in the U.S., sets a maximum resale price on all gnomes. Is Gary's maximum price policy a per se violation of the Sherman Act?
A) Yes, manufacturers cannot limit resale prices.
B) No, pricing violations are prosecuted under the FTC Act.
C) Yes, but only if one of the distributors first initiated the action.
D) No, maximum price setting is not a per se violation.
Correct Answer:
Verified
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