Frictionless Lubricant Corporation and Grease, Inc., are the principal sup?pliers of their product in their market. They agree that Frictionless will sell exclusively to retailers and Grease will sell exclusively to wholesalers. Under antitrust law, this is most likely

Question

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This agreement between Frictionless and Grease to divide the market can be seen as a violation of Section 1 of the Sherman Antitrust Act, which prohibits any agreement between two or more companies that unreasonably restrains trade. Such division of markets between competitors is often considered a per se violation, meaning that it is inherently illegal without any need to prove its actual effect on competition. This kind of agreement eliminates competition in price, quality, and innovation and harms consumers by creating a monopoly or a cartel. Therefore, the answer is A) a per se violation.