ETH/321 WK 5 APPLY | QUESTIONS AND ANSWERS |
2026 UPDATE | 100% CORRECT
Decide the legality of the company's decision or action in the following
situation:
Vericorp wants to increase its profitability. It rearranges its distribution services
so that it can serve customers in certain areas better, while leaving other areas
where competitors are stronger unattended. The company makes no
agreement with a competitor in doing so. Which of the following is true of this
action? Answer - This may be illegal under the rule of reason
Identify the trade-restraining practice that this example demonstrates.
Two retailers decide that they will both sell no more than 100 premium TVs per
month in order to maintain the quality image of the TVs. Answer - Controlling
output
Flippatech is a home furnishings manufacturer. It wants to form a merger with
SleepzCorp, another home furnishings manufacturer. This would be a
__________ merger. Answer - Horizontal
Blinkorp is selling toys to retailers across the nation. Depending on the season,
the company may make its toys with either higher-cost domestic plastics or
lower-cost foreign plastics. The retailers who purchase from Blinkorp complain
about the different prices caused by the differently-priced materials. Which of
the following is true? Answer - Blinkorp is justified in charging different prices
because of the differing production costs
, For the scenario below, determine the legality of the company's actions.
Guncorp is selling rifles to a retailer Sportsacorp. In order for Sportsacorp to
purchase a shipment of rifles, Guncorp requires that Sportsacorp also purchase
a shipment of pistols. Answer - Strictly illegal
Millitech is a sports equipment manufacturer. It wants to form a merger with
an athletic wear company. This would be a __________ merger. Answer -
Product market extension
For the scenario below, determine the legality of the company's actions.
Wreckorp wants to maintain an exclusivity image for its product line of sports
equipment. It limits its distribution to 100 stores in each region Answer - May
be legal or illegal, depending on certain business circumstances
For the scenario below, determine the legality of the company's actions.
Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an
agreement wherein Bigcorp may not charge more than $300 for a speaker
system Answer - legal
Gilcorp sells eggs to customers one day for $3.00 per dozen. The following day
they sell their eggs for $4.25 per dozen. Which of the following is true of this
action? Answer - NOT illegal per se
Identify the trade-restraining practice that this example demonstrates.
Company A and Company B both work in the candy industry. They agree that
Company A will only sell chocolate to Company C and Company B will only sell
fruit candies to Company C. Answer - division of markets
Government agencies generally have power to do all but which of the
following? Answer - create a new agency in order to address important goals...
2026 UPDATE | 100% CORRECT
Decide the legality of the company's decision or action in the following
situation:
Vericorp wants to increase its profitability. It rearranges its distribution services
so that it can serve customers in certain areas better, while leaving other areas
where competitors are stronger unattended. The company makes no
agreement with a competitor in doing so. Which of the following is true of this
action? Answer - This may be illegal under the rule of reason
Identify the trade-restraining practice that this example demonstrates.
Two retailers decide that they will both sell no more than 100 premium TVs per
month in order to maintain the quality image of the TVs. Answer - Controlling
output
Flippatech is a home furnishings manufacturer. It wants to form a merger with
SleepzCorp, another home furnishings manufacturer. This would be a
__________ merger. Answer - Horizontal
Blinkorp is selling toys to retailers across the nation. Depending on the season,
the company may make its toys with either higher-cost domestic plastics or
lower-cost foreign plastics. The retailers who purchase from Blinkorp complain
about the different prices caused by the differently-priced materials. Which of
the following is true? Answer - Blinkorp is justified in charging different prices
because of the differing production costs
, For the scenario below, determine the legality of the company's actions.
Guncorp is selling rifles to a retailer Sportsacorp. In order for Sportsacorp to
purchase a shipment of rifles, Guncorp requires that Sportsacorp also purchase
a shipment of pistols. Answer - Strictly illegal
Millitech is a sports equipment manufacturer. It wants to form a merger with
an athletic wear company. This would be a __________ merger. Answer -
Product market extension
For the scenario below, determine the legality of the company's actions.
Wreckorp wants to maintain an exclusivity image for its product line of sports
equipment. It limits its distribution to 100 stores in each region Answer - May
be legal or illegal, depending on certain business circumstances
For the scenario below, determine the legality of the company's actions.
Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an
agreement wherein Bigcorp may not charge more than $300 for a speaker
system Answer - legal
Gilcorp sells eggs to customers one day for $3.00 per dozen. The following day
they sell their eggs for $4.25 per dozen. Which of the following is true of this
action? Answer - NOT illegal per se
Identify the trade-restraining practice that this example demonstrates.
Company A and Company B both work in the candy industry. They agree that
Company A will only sell chocolate to Company C and Company B will only sell
fruit candies to Company C. Answer - division of markets
Government agencies generally have power to do all but which of the
following? Answer - create a new agency in order to address important goals...
