Cicily Bridgeport and Collin Wilson own Northeastern Galleries and Upper West Galleries,respectively.For artists displaying paintings in their galleries,Cicily and Collin charge a 22% commission for any sales made.Cicily and Collin have always charged 22%,but there is a slump in sales.When Cicily meets Collin at a Met event,she suggests,"Collin,let's both go to 25%.What can they do if we both charge 25% and we can earn enough to make up for the market downturn." Cicily:

Question

Quizplus · Accepted Answer

Cicily's proposal to Collin to both increase their commission rate to 25% is a clear violation of the Sherman Act, which prohibits price fixing between competitors. By colluding to set the same commission rate, Cicily and Collin are essentially eliminating competition between their galleries, which harms consumers (artists) by reducing their options and potentially driving up prices. This type of behavior is considered illegal under the Sherman Act.

Cicily Bridgeport and Collin Wilson Own Northeastern Galleries and Upper