Fact Pattern 16-2
Number One Oil Company sells gas to various gas stations. Number One requires that the gas stations agree that they will not sell gas above a certain maximum price set by Number One. Some of the gas stations are unhappy with the arrangement because they wish to sell gas at any price they choose. Unfortunately for them, other oil companies in the region also impose maximum price restrictions. The station owners begin investigating whether any antitrust violation could be involved.
-Refer to Fact Pattern 16-2.Which of the following is true regarding whether the imposition of maximum prices under the facts presented would be an antitrust violation?
A) The U.S.Supreme Court has ruled that such restrictions do not violate federal antitrust law.
B) The imposition of maximum pricing restrictions is per se illegal under federal antitrust law.
C) A rule of reason approach is used in determining whether the imposition of maximum prices is illegal under federal antitrust law.
D) A presumption of reasonableness approach is used in determining whether the imposition of maximum prices is illegal under federal antitrust law.

Question

Quizplus · Accepted Answer

The imposition of maximum prices would not be per se illegal under federal antitrust law, but rather would be subject to a rule of reason analysis. This means that the court would weigh the pro-competitive and anti-competitive effects of the pricing restrictions to determine whether they ultimately harm or benefit consumers.

Fact Pattern 16-2 Number One Oil Company Sells Gas to Various Gas Stations