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Discuss the Validity and Effect of Each of the Following

Question 17

Essay

Discuss the validity and effect of each of the following:
_a_.Two manufacturers of the same product decide to allocate territories, with one taking the southern States.
_b_.A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract.
_Carrin'_s_Departmen_t_Stor_e_sell_s_it_s_product_s_fo_r₁₀_%_unde_r_th_e_suggeste_d_retai_l_price_._One
c. manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.

Correct Answer:
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_a_.^Thi^sⁱ^s^a^horizonta^l^marke^t^allocation^.^I^tⁱ^s^a^pe^r^s^e^violatioⁿ^o^f^Sectioⁿ¹^o^f^the
^Shermaⁿ^Act.
_b_.^Thi^s^woul^d^b^e^aⁿ^illega^l^grou^p^boycott^,^excep^t^tha^tⁱ^t^involve^s^a^labo^r^union^,^an^d^the
^Claytoⁿ^Ac^t^exempt^s^labo^r^union^s^fro^m^al^l^antitrus^t^laws.
Until recently it was considered a p...
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