Blue Company and Cherry Corporation are the chief competitors in their market. They agree that Blue will operate only north of the Mason-Dixon line and Cherry will operate only south of the same line. Under the Sherman Act, this is

Question

Quizplus · Accepted Answer

The agreement made by Blue Company and Cherry Corporation to operate only in separate geographical areas constitutes a per se violation of Section 1 of the Sherman Act as it is an illegal agreement that unreasonably restrains trade and competition. It does not matter if their competitors make similar deals or whether they acquire monopoly power, the agreement itself is illegal.

Blue Company and Cherry Corporation Are the Chief Competitors in Their