 Tech, Inc., sells its brand-name computer equipmentdirectly to its franchised retailers. Depending on how existingfranchisees do, Tech may limit the number of franchisees in a givenarea to reduce intrabrand competition. Tech’s restriction on thenumber of dealers likely is
A) a per se violation of the Sherman Act.
B) exempt from the antitrust laws.
C) subject to continuing review by the appropriate federalagency.
D) subject to the rule of reason.
Francis owns a small motel in Sugarloaf Key. She notices by meansof public advertising that her competitors in Big Pine Key andRamrod Key have extended by two weeks their “winter season” andthus their winter season higher rates. Francis also notices the “novacancy” signs at her competitors’ motels. So, Francis decides toextend the winter season at her motel too. Francis has engaged:
A) Illegal horizontal price-fixing by means of an expressagreement.
B) Illegal horizontal price-fixing by means of an impliedagreement
C) Legal action by means of the doctrine of ConsciousParallelism
D) Legal action since anti-trust law does not apply to smallmotels, only large ones and hotels.
General Construction contracts to build a store for Home Stores for$1 million. In mid-project, Home repudiates the contract, andGeneral stops working. General incurred costs of $600,000 and wouldhave made a profit of $100,000. General’s measure of damages likelyis
A) $1 million.
B) $700,000.
C) $100,000.
D) nothing.
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