Fact Pattern 16-2
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 16-2. Which of the following is true regarding whether the imposition of maximum prices under the facts presented would be an antitrust violation?

Question

Quizplus · Accepted Answer

The imposition of maximum pricing restrictions would be analyzed under the rule of reason approach, which considers the procompetitive and anticompetitive effects of the restriction. This analysis includes factors such as market power, harm to competition, and potential justifications for the restriction. The per se illegal standard (B) only applies to certain types of conduct that are deemed inherently anticompetitive, and the presumption of reasonableness approach (D) is not used in antitrust law. The U.S. Supreme Court has not issued a ruling specifically on the legality of price maximums, making (A) an incorrect option.

Fact Pattern 16-2 Number One Oil Company Sells Gas to Various Gas Stations