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A Fast-Food Franchisor Required Its Franchisees to Sell a Certain

Question 1

Multiple Choice

A fast-food franchisor required its franchisees to sell a certain type of ice cream and no other. Which of the following would not be a consideration in determining whether this arrangement violates antitrust laws?


A) The franchisor owns 20 percent of the ice cream company from which it requires its franchises to purchase.
B) The franchisor's reason for requiring the franchisees to use the specified ice cream is to increase the profits of the franchisor.
C) The franchisor has all the necessary licenses to operate the restaurant.
D) The franchisor does not dominate the ice cream market.

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