Smoothwater Driftboat Corporation refuses to sell its products to Sportsters Weekend,Inc. ,a recreational products dealership.This is
A)price discrimination.
B)a horizontal market division.
C)an exclusive-dealing contract.
D)a unilateral refusal to deal.

Question

Quizplus · Accepted Answer

This scenario describes a unilateral refusal to deal, where Smoothwater Driftboat Corporation is refusing to sell their products to Sportsters Weekend, Inc for unknown reasons. This is not price discrimination because it is not based on different pricing for different buyers. It is also not a horizontal market division because Smoothwater is not dividing up the market with other firms. It is not an exclusive-dealing contract because there is no agreement being made between the two firms.

Smoothwater Driftboat Corporation Refuses to Sell Its Products to Sportsters