Pacific Bicycle,Inc. ,is the major distributor of bikes in the state of California.Pacific's closest competitor is Golden State Bike Company,another California firm.They agree that Golden State will distribute bikes in north?ern California and Pacific will distribute bikes in southern California.This is

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This is a market division agreement, where two competitors agree to divide the market geographically to avoid competing with each other in the same areas. It is a violation of antitrust laws, but it is not as harmful to consumers as price-fixing or group boycotts. Tying arrangement involves selling a product only on the condition that another product will be purchased as well, which is not the case here.