Horizontal price-fixing:
A) is also called resale price maintenance.
B) occurs when the manufacturer gets the retailer to agree to follow the suggested retail price.
C) can be legally justified if there was a direct agreement between competitors.
D) is an attempt by competitors to interfere with the market and control prices.

Question

Quizplus · Accepted Answer

The essential characteristic of a free market is that the price of goods and services is determined by the play of forces in the marketplace. Attempts by competitors to interfere with the market and control prices are called horizontal price-fixing and are illegal per se under Section 1 of the Sherman Act.

Horizontal Price-Fixing