A restraint involving collaboration among competitors at the same level in the chain of distribution is:
A) a vertical restraint.
B) a horizontal restraint.
C) price fixing.
D) a trust.

Question

Quizplus · Accepted Answer

A restraint involving collaboration among competitors at the same level in the chain of distribution is a horizontal restraint. This type of restraint can include agreements among competitors such as price-fixing or market-sharing, and is generally considered anticompetitive and illegal under antitrust laws. Vertical restraints, on the other hand, involve collaboration between firms at different levels in the chain of distribution, such as between manufacturers and retailers. Trusts refer to a specific type of organized collusion among multiple firms, and are not necessarily related to horizontal or vertical restraints.

A Restraint Involving Collaboration Among Competitors at the Same Level