Happy City has three distributors of milk products.Shawn,who owns a grocery store,angers one of the distributors by insisting that additional milk be delivered on Christmas Eve.Shawn annoys another distributor after making a delivery driver wait to deliver milk.The three distributors get together and discuss the fact that they like all the other grocers in town better than Shawn.One of them has an idea that they should stop selling milk products to Shawn.The milk distributors call their friends the meat distributors and talk them into not selling meat to Shawn either.Shawn hears about the plot and wants to stop it.Which of the following best describes the agreements between the distributors of milk and meat to not sell to Shawn?
A) It would likely be a boycott.
B) It would likely be a horizontal distribution agreement.
C) It would likely be a vertical distribution agreement.
D) There is no descriptive term in antitrust law because this agreement was among sellers who do not legally have to sell to any particular buyer.

Question

Quizplus · Accepted Answer

The agreement between the distributors of milk and meat to not sell to Shawn is likely a boycott, which is an agreement among competitors to not do business with a particular buyer or group of buyers. This can be considered illegal under antitrust law if it harms competition in the marketplace.

Happy City Has Three Distributors of Milk Products