Alpha, an expensive brand of watch that sell for $5,000 (suggested retail price), sells to fine jewelry stores for $2,500. Irritated that Amer's Jewelry is selling the watches to the public for $4,000, while competitors are selling for $5,000, stops selling the watches to Amer's. Amer's sues Alpha for antitrust violation. It is likely that Amer's will:

Question

Quizplus · Accepted Answer

Alpha has the right to decide who to sell to, and there is no violation of antitrust laws unless the decision is based on discriminatory pricing or other anti-competitive behavior. In this case, there is no evidence of discriminatory pricing, and Alpha is simply exercising its right to choose its distribution channels. Therefore, Amer's is unlikely to win the lawsuit for antitrust violation.

Alpha, an Expensive Brand of Watch That Sell for $5,000