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Which of the Following Is True Regarding the Contention of Shirley

Question 56

Multiple Choice

Which of the following is true regarding the contention of Shirley that her agreements with sellers to the effect that the sellers will only carry her scuba gear are good business practices and legal?


A) She is correct.
B) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under Section 1 of the Sherman Act.
C) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under the Clayton Act.
D) Additional information is needed in order to determine whether she violated either the Clayton Act or the Sherman Act because her actions will be reviewed under a rule-of-reason test with the primary inquiry being whether her actions were reasonable in view of competitive practices in the industry.
E) If the agreement lessens competition or tends to create a monopoly, the agreement is in violation of Section 3 of the Clayton Act.

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