All of the following actions are potential rule- of- reason violations except which one?
A)an agreement with a customer about the resale price the customer will charge for the product
B)an agreement with a competitor firm to not sell to a particular customer
C)an exclusive dealings contract with a customer
D)an agreement with a customer about the markets in which the customer is allowed to resell the product

Question

Quizplus · Accepted Answer

All of the other actions listed can potentially violate rule of reason analysis.

A) An agreement with a customer about the resale price the customer will charge for the product can be considered price-fixing and can violate rule of reason analysis.

C) An exclusive dealings contract with a customer can be anti-competitive if it forecloses other potential competitors from the market.

D) An agreement with a customer about the markets in which the customer is allowed to resell the product can also limit competition in certain markets.

B) However, an agreement with a competitor firm to not sell to a particular customer does not involve any cooperation or agreement to restrain competition, and thus does not violate the rule of reason analysis.

All of the Following Actions Are Potential Rule- Of- Reason