The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
-The agreement between ABC Bakery and Peggy is an agreement in restraint of trade.

Question

Quizplus · Accepted Answer

The agreement between ABC Bakery and Peggy's Grocery is an example of price maintenance, which is considered an agreement in restraint of trade because it limits the ability of the retailer to set their own price for the products.

The ABC Bakery Sold Bread and Cakes to Peggy's Grocery