Asked by Randell Baley on May 12, 2024
Verified
Because a single seller is free to deal with whomever it wishes, the seller's unilateral refusal to deal cannot violate Section 2 of the Sherman Act.
Unilateral Refusal
The act of one party decisively rejecting or declining an offer or agreement without mutual consent or negotiation.
Sherman Act
A foundational antitrust law in the United States that prohibits monopolistic practices and promotes fair competition.
Single Seller
A market condition where only one seller exists, often leading to monopoly.
- Identify the exceptions and allowable contracts under the jurisdiction of antitrust regulations.
Verified Answer
BW
Brian WojcioMay 14, 2024
Final Answer :
False
Explanation :
A seller's unilateral refusal to deal can violate Section 2 of the Sherman Act if it maintains or attempts to acquire monopoly power as a result, and there's no legitimate business rationale for the refusal. This is because such actions can be seen as anti-competitive and harmful to the market.
Learning Objectives
- Identify the exceptions and allowable contracts under the jurisdiction of antitrust regulations.
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