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Cal-Maine Foods Was the Defendant in an Antitrust Suit Brought

Question 132

Multiple Choice
Cal-Maine Foods was the defendant in an antitrust suit brought by the purchasers of eggs.Cal-Maine is an egg distributor and the suit accused Cal-Maine of manipulating the egg supply in order to increase prices.Egg prices jumped 28% in 2007 and 14% in 2008 as egg supplies dwindled.Cal-Maine said that following industry-wide animal-welfare guidelines resulted in fewer chickens per farm and,as a result,fewer eggs.Which of the following statements is correct?

Cal-Maine Foods was the defendant in an antitrust suit brought by the purchasers of eggs.Cal-Maine is an egg distributor and the suit accused Cal-Maine of manipulating the egg supply in order to increase prices.Egg prices jumped 28% in 2007 and 14% in 2008 as egg supplies dwindled.Cal-Maine said that following industry-wide animal-welfare guidelines resulted in fewer chickens per farm and,as a result,fewer eggs.Which of the following statements is correct?


A) Reducing supplies that affect prices is not covered under the antitrust laws.
B) Cal-Maine would have had to conspire with a competitor for the antitrust laws to apply.
C) Cal-Maine is not liable to the purchasers of eggs, only the stores that bought the eggs.
D) none of the above

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