A per se violation of Section 1 of the Sherman Act that occurs when a party at one level of distribution enters into an agreement with a party at another level to adhere to a price schedule that either sets or stabilizes prices is known as ________.
A) a group boycott
B) horizontal price fixing
C) resale price maintenance
D) nonprice vertical restraints

Question

Quizplus · Accepted Answer

Resale price maintenance occurs when a manufacturer (or any party at one level of distribution) and its distributors (or parties at another level) agree on the price at which the product will be sold to consumers. This practice can set or stabilize prices, which is considered a per se violation of Section 1 of the Sherman Act because it restricts competition.

A Per Se Violation of Section 1 of the Sherman