A per se violation of Section 1 of the Sherman Act that occurs when a party at one level of distribution enters into an agreement with a party at another level to adhere to a price schedule that either sets or stabilizes prices is referred to as ________.
A) group boycotts
B) horizontal price fixing
C) resale price maintenance
D) nonprice vertical restraints

Question

Quizplus · Accepted Answer

Resale price maintenance involves an agreement between a supplier and a retailer (or distributor) that the retailer will sell the supplier's product at or above a minimum price. This practice can impact competition by setting or stabilizing prices across different levels of distribution, which is why it is considered a per se violation of Section 1 of the Sherman Act. Horizontal price fixing (B) involves competitors at the same level of distribution agreeing on prices, which is different from the scenario described. Group boycotts (A) and nonprice vertical restraints (D) involve other types of anticompetitive practices not directly related to setting or stabilizing prices through agreements across different distribution levels.

A Per Se Violation of Section 1 of the Sherman