Which of the following is true of vertical price-fixing?
A) It is an attempt by competitors to interfere with the market and control prices.
B) It is not within the scope of Section 1 of the Sherman Act.
C) It is illegal per se for manufacturers to state a "suggested retail price" for their products.
D) It is an attempt by manufacturers to control the resale price of their products.

Question

Quizplus · Accepted Answer

Attempts by manufacturers to control the resale price of their products are within the scope of Section 1 of the Sherman Act. This kind of behavior is called vertical price-fixing or resale price maintenance. Manufacturers can lawfully state a "suggested retail price" for their products, since this does not involve joint action. If the manufacturer gets the retailer to agree to follow the suggested price, however, such an agreement is joint action in restraint of trade and may be illegal per se under Section 1.

Which of the Following Is True of Vertical Price-Fixing