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Dig Inc. is the major wholesale distributor of heavy equipment in six states. Dig's closest competitor is Excavator Company. The two firms agree that Dig will operate in four of the states and Excavator in the other two. This is
A) a group boycott.
B) a market division.
C) a price-fixing agreement.
D) a trade association.
Market Division
An illegal agreement between competitors to split a market into sections where each party restricts its operations to certain geographic areas or customer segments, to reduce competition.
Heavy Equipment
Refers to large and heavy-duty vehicles designed for construction tasks, most notably earthwork operations.
Wholesale Distributor
A business entity that purchases goods in large quantities from manufacturers and sells them in smaller quantities to retailers or other distributors.
- Discern between permissible and impermissible behaviors under the Sherman Act, the Clayton Act, and other regulations targeting monopolies.
- Achieve a deep understanding of the distinctions between rule of reason and per se violations under antitrust law.
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Learning Objectives
- Discern between permissible and impermissible behaviors under the Sherman Act, the Clayton Act, and other regulations targeting monopolies.
- Achieve a deep understanding of the distinctions between rule of reason and per se violations under antitrust law.
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