[On the Town] Mateo Began Taking People on Tours of Historic

Multiple Choice

[On the Town] Mateo began taking people on tours of historic sites in his town. This had not been done before because no one thought the town contained much in the way of historical significance. Mateo, however, did some research and, with a very active imagination on his part, came up with some good stories. He started to make a nice profit with the tours, particularly with tourists passing through the town on the way to the mountains. Mateo began hearing of rival tour groups that were planning to start giving tours in the area. Mateo sent a memo to his secretary asking, "How can we shut down other potential tour groups in order to keep all the business?" One rival company started operations, but Mateo still had 85 percent of the business. He planned to run the rival out of business and prevent the start-up of any other tour operations in his town. Mateo offered to do a free advertising brochure for any business that would put up a poster advertising his tour group and agree not to advertise, or mention in any way, any other tour group. Mateo was particularly successful in making that agreement with hotels and restaurants in his town due to his likeable personality. When Robyn, who ran a rival tour group, heard about Mateo's actions, she was furious and accused him of an antitrust violation because he was trying to keep all the tour business for himself. Mateo told Robyn she was crazy and that the only reason she had no business was that she focused her tours on dry historical fact and did not do research on romantic relationships in the area in order to "spice-up" her tours. He also told her that he was not a monopolist because he did not have all the business as evidenced by Robyn's own tour service.
-With Robyn's claim that Mateo was attempting to keep all the tour business for himself, which of the following would she mostly likely be alleging?

A) A violation of Section 1 of the Sherman Act
B) A violation of Section 2 of the Sherman Act
C) A violation of the Business Regulation Act
D) A violation of the Robinson-Patman Act
E) A violation of Sections 1 and 2 of the Sherman Act, but not a violation of the Business Regulation.