Recently, some executives for highway construction companies agreed to stop competing with each other on price and to meet every three months to decide their price for the next quarter. In this situation:
A) the Sherman Act has been violated.
B) the Robinson-Patman Act has been violated by price discrimination.
C) the executives are exercising their right to free trade.
D) the unfair trade practice acts have been violated.
E) as long as prices don't increase-the executives have done nothing wrong.

Question

Quizplus · Accepted Answer

The actions of the executives violate the Sherman Act, which prohibits agreements between companies that restrain trade or competition. The agreement to not compete on price and to set prices together is considered price-fixing and is illegal under antitrust laws.

Recently, Some Executives for Highway Construction Companies Agreed to Stop