Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been
A) shown to increase competition.
B) a regular practice in the U.S.
C) encouraged in the U.S. but not in many international markets.
D) a successful strategy for entering international markets.
E) ruled illegal by the U.S. Supreme Court.

Question

Quizplus · Accepted Answer

Horizontal arrangements to limit sales by customer or territory, also known as horizontal price-fixing or horizontal market division, are illegal in the U.S. and have been ruled as a violation of the Sherman Antitrust Act by the U.S. Supreme Court. Such arrangements are considered anti-competitive and restrict free trade.

Horizontal Arrangements Among Competing Retailers, Wholesalers, or Producers to Limit