X, a prestige purse manufacturer, agrees with Y, a big high-end retailer, that r
ID: 444007 • Letter: X
Question
X, a prestige purse manufacturer, agrees with Y, a big high-end retailer, that retailer will never put X's purses on sale or to sell them at discount or sell them below a fixed minimum price, as the manufacturer believes that such practices would harm the manufacturer's prestigious brand and reputation with consumers. This agreement is likely:
A violation of anti-trust law as it is a Per Se price-fixing violation.
An automatic violation of anti-trust law as it is a conspiracy to restrain trade and commerce by harming the consumers.
Legal if it passes the Rule of Reason test.
Legal if the purses are not really cheap "knock-offs."
A violation of anti-trust law as it is a Per Se price-fixing violation.
An automatic violation of anti-trust law as it is a conspiracy to restrain trade and commerce by harming the consumers.
Legal if it passes the Rule of Reason test.
Legal if the purses are not really cheap "knock-offs."
Explanation / Answer
Legal if it passes the Rule of Reason test.
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