Question

Assume that executives from competing producers of the two leading dog-food brands get together and decide to charge a certain price for their lamb and rice dog food. This would be an example of:
a. a vertical restraint of trade.
b. a horizontal restraint of trade.
c. a violation of the Clayton Act.d. a violation of an antitrust exemption.

Answer 1

Answer:

b. a horizontal restraint of trade.

Explanation:

This would be an example of a horizontal restraint of trade. Horizontal restraint of trade is an agreement between competitors  at the same level of distribution, producing similar goods for the purpose of fixing product price, bid rigging, market allocation, group boycotts or any other purpose that will influence the market to their favour and minimize competition between them.