If Rocco Co.agrees with Cuszo Co.that Rocco will not sell beer in Wisconsin if Cuszo will not sell beer in Colorado,under the Sherman Act,this is:
A) no violation.
B) a per se illegal horizontal price fixing agreement.
C) a per se illegal horizontal market allocation.
D) a per se illegal horizontal tying agreement.

Question

Quizplus · Accepted Answer

This is a per se illegal horizontal market allocation agreement because Rocco and Cuszo are agreeing to divide the market by allocating specific territories in which they will not sell their products. This anti-competitive behavior restricts consumer choice and limits competition in both regions.