"Unfair trade practice acts":
A) prohibit very high markups at the retail level.
B) allow manufacturers to set retail prices for branded products.
C) prohibit price fixing among retailers.
D) allow intermediaries to sell below cost.
E) protect certain limited-line retailers from "ruinous" price competition.

Question

Quizplus · Accepted Answer

Unfair trade practice acts protect certain limited-line retailers from "ruinous" price competition, meaning they prohibit other retailers, such as big-box stores, from selling the same products at significantly lower prices and driving the limited-line retailers out of business. This is sometimes called the "Unfair Sales Act" or "Fair Trade Act."

"Unfair Trade Practice Acts