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If a Distributor Persuades a Manufacturer to Refuse to Deal

Question 22

Multiple Choice

If a distributor persuades a manufacturer to refuse to deal with a rival distributor, the two parties:


A) have committed a per se violation of Section 1 of the Sherman Act.
B) do not violate Section 1 of the Sherman Act since this is a unilateral action.
C) are conspiring to form a monopoly, thus directly violating Section 2 of the Sherman Act.
D) are attempting vertical price-fixing.

Correct Answer:

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