Acme produces hamburger at a processing plant. Stores send trucks to pick up the meat. Prince, a large chain of grocery stores, tells Acme it will buy its hamburger if Acme will charge it 5% less than what the grocery stores pay. Acme sells the meat to Prince for less. What violation of the antitrust law may have occurred?

Question

Quizplus · Accepted Answer

The scenario described does not fit the definitions of illegal resale price maintenance, illegal exclusive dealing, illegal vertical integration, or illegal boycott. Offering a discount to a large buyer like Prince does not inherently violate antitrust laws unless it leads to unfair competition or harms the market in a way not described in the scenario.

Acme Produces Hamburger at a Processing Plant