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Francis owns a small motel in Sugarloaf Key. She notices by means of public adve

ID: 444006 • Letter: F

Question

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:

Illegal horizontal price-fixing by means of an express agreement.

Illegal horizontal price-fixing by means of an implied agreement

Legal action by means of the doctrine of Conscious Parallelism

Legal action since anti-trust law does not apply to small motels, only large ones and hotels.

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.

Explanation / Answer

Illegal horizontal price-fixing by means of an implied agreement

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