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Marissa Is the CEO of Motormax Inc, a Generic Auto

Question 24

Multiple Choice

Marissa is the CEO of Motormax Inc, a generic auto parts manufacturer that does business with several large auto manufacturers.Parts manufacturing is a highly competitive business.Several years ago, Marissa was contacted by the CEO of a competitor who asked whether Motormax would like to "go in with them." At the time, Marissa did not understand what that meant, so she replied in the negative.She now realizes, however, that the rival's CEO was proposing a conspiracy to reduce competition.Furthermore, she has begun to notice that the pricing of her competitors' products is always suspiciously the same as hers.Which of the following statements is TRUE?


A) Conscious parallel pricing by parts manufacturers is a criminal offence.
B) The actions of the other parts manufacturers is a criminal office only if an agreement to lessen competition unduly can be proven.
C) Any agreement to intentionally fix prices is a criminal offence.
D) Any agreement to fix prices is a reviewable practice but not a criminal offence.
E) Agreements to fix prices are only reviewable if the price is lower than the cost of production, and only if the intention of the parties to the agreement is to drive competitors out of the market.

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