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GGG Has Set Up a Geographic Distribution System to Promote

Question 9

Multiple Choice

GGG has set up a geographic distribution system to promote its products and also to make sure that intrabrand pricing competition is as limited as possible. Will courts uphold such agreements?


A) No, geographic limitations are reviewed under a per se standard.
B) No, except in cases where the company can show that it absolutely necessary for the company's success.
C) Yes, territorial limitations are reviewed under the rule of reason and are generally upheld.
D) Yes, as long as the territories correspond to natural boundaries and dividing lines.

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