2024 – 1 Tech Inc sells its brand name computer equipment directly to its franchised retailers Depending on

1. Tech, Inc., sells its brand-name computer equipment directly to its franchised retailers. Depending on how existing franchisees do, Tech may limit the number of franchisees in a given area to reduce intrabrand competition. Tech’s restriction on the number 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 federal agency.
D) subject to the rule of reason.

2. Francis owns a small motel in Sugarloaf Key. She notices by means of public advertising that her competitors in Big Pine Key and Ramrod Key have extended by two weeks their “winter season” and thus their winter season higher rates. Francis also notices the “no vacancy” signs at her competitors’ motels. So, Francis decides to extend the winter season at her motel too. Francis has engaged:
A) Illegal horizontal price-fixing by means of an express agreement.
B) Illegal horizontal price-fixing by means of an implied agreement
C) Legal action by means of the doctrine of Conscious Parallelism
D) Legal action since anti-trust law does not apply to small motels, only large ones and hotels.

3. General Construction contracts to build a store for Home Stores for $1 million. In mid-project, Home repudiates the contract, and General stops working. General incurred costs of $600,000 and would have made a profit of $100,000. General’s measure of damages likely is
A) $1 million.
B) $700,000.
C) $100,000.
D) nothing.

4. The four shareholders of Delta, Inc., want to prevent each other from selling the shares to third parties without first being given the opportunity to buy them. The shareholders can provide for this in
A) a buy-sell agreement that includes a “take-along” clause.
B) a buy-sell agreement that includes a right of first refusal.
C) a key-person clause that specifies who can sell what to whom.
D) none of the above.