Assume that Peach Computers has entered into an enforceable resale price maintenance agreement with Computer Super Stores Inc.(CSS Inc.) and CompuMart.Which outcome will result
A)The wholesale price of Peach computers will be different for CSS Inc.than it is for CompuMart.
B)CompuMart will benefit from customers who go to CSS Inc.for information about different computers.
C)CSS Inc.will sell Peach computers at a lower price than CompuMart.
D)CompuMart and CSS Inc.will sell Peach Computers for exactly the same price.

Question

Quizplus · Accepted Answer

Resale price maintenance agreement is an agreement between a manufacturer and its distributors or retailers where the manufacturer maintains control over the resale price of its products. In this case, since Peach Computers has entered into such an agreement with both CSS Inc. and CompuMart, they cannot offer discounts or sell the products below a certain price set by Peach Computers. Hence, both CSS Inc. and CompuMart will sell Peach Computers at the same price. Option A is incorrect because both retailers are bound to sell at the same price. Option B is not relevant to the question as it doesn't affect the resale price maintenance agreement. Option C is also incorrect because both retailers are bound to sell at the same price.

Assume That Peach Computers Has Entered into an Enforceable Resale