Question

Bothell Construction, LLC, Ballard Remodel, Inc., and Tim's House Painting Company agreed that on three upcoming projects, Ballard Remodel would bid lowest on one, Bothell Construction would submit the lowest bid on the second project, and Tim's House Painting would submit the lowest bid on the third project. All three discussed this and agreed that this would be the best way that each would be assured of work for the upcoming season. This behavior:

Answer 1

Answer:

violates ethical, but not legal, standards.

Explanation:

Sherman act was created to prohibit restrains on trade of any collusion by different parties to form a monopoly or control price.

The act does not however prohibit all restraints of trade, bit rather those that are very unreasonable and harmful to competition.

In the given scenario the three companies only agreed to bid lowest for the 3 project under consideration.

Their action does not give them unfair advantage over other firms and may even lead to a loss on their part.

They do not have a strategy that will guarantee an edge over other firms.

So this is an ethical violation but not a legal one.