Several manufacturers of ball bearings that are located in countries in the EU operated under a mutual agreement to raise prices in tandem. Their product, they say, is critical in auto production, and shoddy workmanship puts everyone at risk. The pricing agreements were entered into solely for the purpose of keeping cars safe. Which of the following is correct?

Question

Several manufacturers of ball bearings that are located in countries in the EU operated under a mutual agreement to raise prices in tandem.  Their product, they say, is critical in auto production, and shoddy workmanship puts everyone at risk.  The pricing agreements were entered into solely for the purpose of keeping cars safe.  Which of the following is correct?

Quizplus · Accepted Answer

Price-fixing, regardless of the intention, is illegal under antitrust laws such as the Sherman Act.

Several Manufacturers of Ball Bearings That Are Located in Countries