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

There is no clear violation of antitrust laws in this situation. Alpha has the right to set its suggested retail price and sell to the jewelry stores at a discounted price. It is up to the stores to decide on their own pricing strategy. Therefore, Amer's cannot sue Alpha for antitrust violation.

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