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 non-discount 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 a resale price maintenance policy by pressurizing the store manager to increase the retail prices to match those paid by non-discount customers. This is illegal because it limits price competition and can lead to monopolistic practices.

Johnson,the Manager of a Discount Consumer Electronics Store,was Approached by the Manufacturer's