Tech, Inc., sells its brand-name computer equipment directly to its franchised r

Question

Tech, Inc., sells its brand-name computer equipment directly to its franchised retailers. Depending on how existing franchisees do, Tech may limit the number of franchisees in a given area to reduce intrabrand competition. Tech's restriction on the number of dealers likely is

a per se violation of the Sherman Act.

exempt from the antitrust laws.

subject to continuing review by the appropriate federal agency.

subject to the rule of reason.

a per se violation of the Sherman Act.

exempt from the antitrust laws.

subject to continuing review by the appropriate federal agency.

subject to the rule of reason.

Explanation / Answer

exempt from the antitrust laws.

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