Mark Johnson, the manager of a discount consumer electronics store, was approached by the manufacturer's representative on behalf of a marketer of a popular and profitable line of DVD storage racks. The manufacturer's representative implied that if Johnson doesn't raise the retail prices for the storage racks to those paid by the marketer's nondiscount customers, Johnson's supply of racks may be severely curtailed. The manufacturer's representative is guilty of attempting
A)horizontal price fixing.
B)resale price maintenance.
C)price discrimination.
D)predatory pricing.
E)bait and switch pricing.

Question

Quizplus · Accepted Answer

The manufacturer's representative is attempting to enforce resale price maintenance by pressuring Johnson to raise his retail prices to match those paid by the nondiscount customers of the marketer. This violates antitrust laws that prohibit manufacturers from dictating the prices at which their products are sold by retailers.

Mark Johnson, the Manager of a Discount Consumer Electronics Store