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Chilly Charlie's Chardonnay, Inc., and Silly Sally's Merlot, Inc., agree not sell any of their wines...

Chilly Charlie's Chardonnay, Inc., and Silly Sally's Merlot, Inc., agree not sell any of their wines for more $20.00 per bottle. Have they violated any laws by doing this? Explain your answer.

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Answer #1

As both Chilly charlie chardonnay inc and Silly sally merlot inc have indulged in price-fixation agreement by agreeing not to sell any of their wines for more than $20 per bottle,they are violating the law as per Sherman Antitrust Act of 1890.

Price fixation is not allowed as per the law as the price are fixed according to the market mechanism of demand and supply.The anticompetitive agreements between the firms and any distortion of the market is not allowed under the Act.

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