Fact pattern 17-2
Number One Oil Company sells gas to various gas stations.Number One requires that the gas stations agree that they will not sell gas above a certain maximum price set by Number One.Some of the gas stations are unhappy with the arrangement because they wish to sell gas at any price they choose.Unfortunately for them,other oil companies in the region also impose maximum price restrictions.The station owners begin investigating whether any antitrust violation could be involved.
-Refer to fact pattern 17-2.Which of the following best describes the situation by which Number One Oil Company and other companies impose maximum price restrictions?

Question

Quizplus · Accepted Answer

Vertical price-fixing occurs when a supplier, like Number One Oil Company, sets the maximum price at which a retailer, such as a gas station, can sell its product. This is a vertical relationship between different levels of the supply chain.

Fact Pattern 17-2 Number One Oil Company Sells Gas to Various Gas Stations.Number