Agreements between competitors that have the effect of diminishing competition are called ________.
A) vertical competition agreements
B) cross-licensing agreements
C) multiple licensing agreements
D) horizontal competition agreements

Question

Quizplus · Accepted Answer

Horizontal competition agreements refer to agreements between competitors that have the effect of diminishing competition. Vertical competition agreements refer to agreements between two firms at different stages in the supply chain. Cross-licensing agreements refer to a type of licensing agreement where two companies exchange licenses to use each other's patented technologies. Multiple licensing agreements refer to an arrangement where one entity licenses the same product or service to multiple parties. Only option D specifically relates to agreements that diminish competition between competitors.

Agreements Between Competitors That Have the Effect of Diminishing Competition