Bargain Basement Inc, is a discount house. It buys brand name products from various
manufacturers and sells them at below the suggested retail price.
This practice has angered
some of those manufacturers who believe that their products are high quality and should not be
sold at bargain basement prices. Several of those manufacturers agree that they will no longer
sell their products to Bargain Basement. This action is:
A) Legal, because it was reasonable under the rule of reason.
B) An illegal group boycott.
C) Legal, because it was unilateral.
D) An illegal vertical market division.
E) An illegal horizontal market division.
B
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