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Katie Says That Her Agreements with Sellers That Ask the Sellers

Question 8

Multiple Choice

Katie says that her agreements with sellers that ask the sellers to carry only her scuba gear are good and legal business practices.Which of the following is true regarding her statement?


A) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under the Clayton Act.
B) She is correct.
C) 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.
D) If the agreement lessens competition or tends to create a monopoly,the agreement is in violation of Section 3 of the Clayton Act.
E) 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.

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