Manufacturers who refuse to deal with retailers who do not charge a suggested retail price have...

Manufacturers who refuse to deal with retailers who do not charge a suggested retail price have committed a per se violation of the antitrust laws.

True

False

Expert Solution

False.

Manufacturers sugest a price that may benefit consumers by interbrand or even intrabrand competition. The maximum retailprice is a kind of price ceiling that prevents retilers from charging very hgh prices from consumers.

On the other hand,antitrust laws promote competition and protect consumers from anticompetitive business practices. If competitors collude on elimination of bidding, that would be a per se violation. Or an agreement among competitors to control the supply of their products is a per se violaton. Thus the acts that are harmful to competition and are considered to be illegal are per se violations of antitrust laws. They include any arrangement to fix prices, divide markets, or rig bids. But the acts that intend to protect consumers from exploitaion by retailers are not per se violations. And, setting a mximum price by the manufacturer is done with an intention of protecting the consumer, hence it is not a violation of antirust law.

Rahul Sunny answered 1 year ago

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