To develop a network of dealers, Hummer vehicles are sold only at one dealership per city. Other dealers want the vehicles to sell, but are refused. The existing dealers earn high profit margins due to the lack of local competition. Under antitrust law, this arrangement is likely to be found:

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EThis arrangement can be seen as legal under the rationale that it allows Hummer, which may have a small market share, to become a better competitor by establishing exclusive dealerships. This can help in brand building and ensuring quality control over sales and services. However, it can also be considered illegal as it acts as a boycott of willing dealers who are refused the opportunity to sell Hummer vehicles, potentially limiting competition and consumer choice in those cities. Antitrust laws aim to promote competition and prevent unfair practices that could harm consumers or other businesses.

To Develop a Network of Dealers, Hummer Vehicles Are Sold