Boycotts that are in violation of the Sherman Act include:
A) a seller's refusal to deal with any particular buyer.
B) a manufacturer who refuses to sell to a retailer who persists in selling below the manufacturer's suggested retail price.
C) when two or more firms that have market power agree not to deal with a third party,thereby eliminating competition.
D) cooperative agreements designed to increase economic efficiency and render markets more competitive.

Question

Quizplus · Accepted Answer

A boycott between two or more firms with market power, where they agree not to deal with a third party, can be seen as a form of collusion and an attempt to eliminate competition, which violates the Sherman Act. Both options A and B describe legitimate business practices, while option D describes agreements that promote competition and efficiency and are therefore not in violation of the Sherman Act.

Boycotts That Are in Violation of the Sherman Act Include