Multiple Choice
The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing. During the meeting, they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics. Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle. As a result, the dealers will make more profit on each vehicle sold due to the high demand for the new model. This type of agreement would be viewed by the courts as:
A) Horizontal collusion that is illegal.
B) Horizontal collusion that is legal.
C) Vertical collusion that is legal.
D) Vertical collusion that is illegal.
E) An exclusive distribution arrangement that is legal.
Correct Answer:
Verified
Correct Answer:
Verified
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