Margaret tells the members of the Raleigh Association of Restaurant Owners that they will be able to get a better price on linen supplies (tablecloths, napkins) if they will deal with one supplier rather than split their business between two.They all know Margaret deals with Niagara Linen rather than Cayuga.Under the Sherman Act, if they all sign contracts with Niagara:
A)there is no violation since there is no express agreement to boycott Cayuga.
B)illegality may be inferred from this conduct.
C)there is no concerted action.
D)this is horizontal market allocation.

Question

Quizplus · Accepted Answer

Illegality may be inferred from this conduct because if the restaurant owners collectively decide to deal exclusively with Niagara Linen, it could be seen as an implicit agreement to boycott Cayuga, potentially violating antitrust laws under the Sherman Act.

Margaret Tells the Members of the Raleigh Association of Restaurant