TRUE/FALSE QUESTIONS
Indicate whether each of the following statements is true or false, and explain why.
1. If a manufacturer believes a retailer does not offer a reasonable return policy to consumers, the manufacturer may refuse to sell to that retailer without violating the federal antitrust laws.
2. It is illegal per se for franchisors to set both minimum and maximum prices at which their franchisees may sell.
3. A, B, and C, national manufacturers of tea kettles, orally agree that due to the ruinous competition in the market place, they will establish a reasonable price to charge their customers and that none of them will sell below that price. Their behavior is illegal.
4. D, E, and F, national manufacturers of chewing gum, each agree not to charge their consumers more than 75 cents per pack. Their behavior is illegal.
5. K, L, and M, beer distributors, agree amongst themselves as to a territorial allocation of markets in the Midwest, and agree that none will distribute beer products in a market allocated to another. This restraint on trade will be evaluated under the rule of reason standard.
6. If a manufacturer believes a retailer does not offer a reasonable return policy to consumers, the manufacturer may refuse to sell to that retailer without violating the federal antitrust laws.
7. It is illegal per se for franchisors to set both minimum and maximum prices at which their franchisees may sell.
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