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Introductory Business Law/Legal Environment
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Sherman Antitrust Act Violations

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A small town has only two grocery stores. When a third store opens and introduces strong competition, the owners of the two original stores agree to collaborate rather than compete. They decide to lower their prices below those of the new store and maintain these artificially low prices until the new competitor is driven out of business. Which horizontal agreement in violation of the Sherman Antitrust Act of 1890 does this scenario illustrate?

A

Tying agreements

B

Price fixing

C

Market allocations

D

Boycotts

E

Monopolies

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